What is the plowback ratio of nike

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You collect the following data on Nike Inc. (NKE). Nike is currently trading at $154.49 per share. Its earnings per share are $1.60 and its dividends per share are $0.88. Nike's beta is 0.85. The risk-free rate is 0.5% and the expected market return is 9.5%.

(a) What is the plowback ratio of Nike?

(b) Which growth rate of dividends does the market incorporate accord- ing to the Gordon Growth Model?

Reference no: EM133114494

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