What is ontel growth rate

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Ontel Inc expects an EPS of $10 and DPS (dividend per share) of $6 next year and expects to maintain the same payout ratio for the foreseeable future. It has an opportunity to invest its retained earnings at an ROIC of 15%.

a. What is Ontel's growth rate?

b. Given a cost of capital of 12%, what is Ontel's price per share?

Reference no: EM133120741

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