What is the sustainable growth rate

Assignment Help Financial Management

Reference no: EM13895495

Johnson Products earned $5.20 per share last year and paid a $2.15 per share dividend. If ROE was 16 percent, what is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Sustainable growth rate %

Reference no: EM13895495

Questions Cloud

Describe the project scope and project management plan : Describe the project scope and project management plan

According to the constant dividend growth model : A share of stock will pay a dividend of $1.1 one year from now, with dividend growth of 4.4 percent thereafter. According to the constant dividend growth model, if the required return is 14.7 percent, what should the value of the stock be 2 years fro..

Overall qualitative design : Please consider the core components of the following study, data collection, and analytical methods by addressing the following questions: What was the overall qualitative design, i.e. phenomenology, ground theory, etc.?

About the share price : Bill’s Bakery has current earnings per share of $2.5. Current book value is $4.3 per share. The appropriate discount rate for Bill’s Bakery is 17 percent. Calculate the share price for Bill’s Bakery if earnings grow at 3.4 percent forever.

What is the sustainable growth rate : Johnson Products earned $5.20 per share last year and paid a $2.15 per share dividend. If ROE was 16 percent, what is the sustainable growth rate?

Have the greatest effect on the projects profitability : Why is it important for managers to know the critical input variables, where critical is defined as the variables that, when changed, have the greatest effect on the project’s profitability?

Chase strategy-how many employees would be needed : The expected demand in October is 20,000 units, and there are 25 working days in October. The production rate is 10 units per day per employee. The initial inventory is 1,000 units, and the ending inventory target is 5,000 units. Following a chase st..

Paid dividend per share : Could I Industries just paid a dividend of $1.05 per share. The dividends are expected to grow at a 20 percent rate for the next 6 years and then level off to a 5 percent growth rate indefinitely. If the required return is 13 percent, what is the val..

Research philosophy aligns with foundational philosophy : Describe and justify your choice of methodology (quantitative in regards to mental illness stigma) in light of how your research philosophy aligns with the foundational philosophy that supports your methodology. Clearly explain how your personal p..

User Account

All Pages