What is the sustainable growth rate

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Q1. Consider a stock that is expected to pay a dividend of $1.81 a year from now. The current price of the stock is $58.85. The expected rate of return on the stock is 10.7%. What must be the expected growth rate of the dividends? Enter your answer as a percentage. Do not enter the percentage sign into your answer.

Q2. A company has issued preferred stock with an annual dividend of $3.91 that will be paid in perpetuity. The current price of the stock is $43. What is the expected rate of return on the preferred stock? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Q3. Consider a stock that has an annual dividend of $1.5, earnings per share of $3.12, and a price of $39.3. What is the dividend yield? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Q4. A company is expected to have earnings per share of $3.58 this year and to pay a dividend of $2.84. The discount rate for the stock is 17.8% and the rate of return on reinvested earnings is 21.6%. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer.

Reference no: EM133013594

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