Find the payout rate-reinvestment rate and dividend

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Reference no: EM131968725

Comapny XYZ is growing at a sustainable growth rate of 4% but they are not sure if this is the best route. The Cost of equity is 13%, ROE is 8%, and EPS is 8.

a) Find the payout rate, reinvestment rate, dividend, and stock value for a growth rate of 6%, 4%, and 0%.

b) What is their value in growth ($) if they kept growing at 4% per year?

Please show work and explain.

Reference no: EM131968725

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