What is sustainable growth rate

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Reference no: EM131964480

1. A company earned $4.40 per share last year and paid a dividend of $1.75 per share. If ROE was 14%, what is the sustainable growth rate?

2. A firm just paid an annual dividend of $0.80 per share and has a policy of increasing its dividend 3.5% annually. If the appropriate discount rate is 11.5%, what is the present value of the stock?

Reference no: EM131964480

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