What is the sustainable growth rate

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A) A stock has a return on equity of 16.7% and a plowback ratio of 50%. What is the sustainable growth rate? Enter you answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES.

B) Fortress of Solitude Co. expects an earnings per share of $1.47 and reinvests 35% of its earnings. Management projects a rate of return of 11% on new projects and investors expect a 10% rate of return on the stock. What is the sustainable growth rate? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES.

C) Consider a stock that will have dividends in the next three periods of $1.10, $1.21, and $1.25, respectively. The interest rate is 8%. What is the growth rate of the dividend in period 3? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response below rounded to 2 DECIMAL PLACES.

D) Consider a stock that will have price of $35.49 one year from now and pay a dividend of $4.96 in one year. The expected rate of return is 4%. What is the current price of the stock?Enter your response below rounded to 2 DECIMAL PLACES.

Reference no: EM133118764

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