What is the value of the firm shares for company

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Given that a company's return on equity is 14% and management plans to retain 30% of earnings for investment purposes,

Problem (a) Calculate the company's growth rate of future earnings.

Problem (b) If the company just paid a cash dividend of $1.20, and the required rate of return is 13%, what is the value of the firm's shares?

Reference no: EM132935455

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