What is the eps and dividend growth

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Reference no: EM133202943

Economics

  1. Kraft Food current stock price is 53.50. Kraft Food ROE today is 13.25%. The Plowback ratio for Kraft Food is .375%. Three years later Kraft Food is being acquired by Heinz Ketchup. In an external audit it was found that out that Kraft food could no longer maintain a Plowback ratio of .375%. Kraft Food released the following new information ROE of 9.25%, payout ratio .275%, market rate of 7.15%.
    1. What is the EPS and dividend growth in years 2-7?
    2. What is the current stock price? Why does the plowback ratio play a pivot role?

Reference no: EM133202943

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