Expected to generate net income each year

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Reference no: EM131844331

The value of a firm is 7.94 million that has a dividend payout ratio of 100 percent, (b) that is expected to generate net income each year? (forever) of $1.31 ?million, and? (c) that has a required equity return? (also the? ROE) of 16.5 ?percent? Now suppose the firm has a payout ratio of 29 percent. Given the earnings? retention, what will be next? year's dividend?

Reference no: EM131844331

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