Sustainable growth rate assuming ending equity is relevant

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Reference no: EM13885097

Scooze Inc. projects a rate of return of equity of 20%. Management plans to pay 70% of earnings as dividends. Earnings this year will be $3.00 per share, and investors expect a 12% rate of return on the stock. Calculate the sustainable growth rate assuming ending equity is relevant. Please show work!

Reference no: EM13885097

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