Maintain without resorting to additional equity issues

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1. An all-equity-financed firm plans to grow at an annual rate of at least 29%. Its return on equity is 45%, 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.) Maximum dividend payout ratio

2. A company just paid a dividend of $1.25, and those dividends are expected to grow at a constant rate of 5% forever. The stock price of this company is $60, what is the stock’s expected dividend yield ?

Reference no: EM131861730

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