Firm can maintain without resorting to additional equity

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1. Lindsay purchased a raffle ticket for $25. Just before the grand prize drawing two people tried to buy her ticket. The first person offered $110, and another offered $145. What is Lindsay's opportunity cost of keeping the raffle ticket?

2. An all-equity-financed firm plans to grow at an annual rate of at least 24%. Its return on equity is 37%. What is the maximum possible dividend payout rate the firm can maintain without resorting to additional equity issues? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)

Reference no: EM131937271

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