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XYZ Company earned $2.40 per share last year. If they paid out $0.91 per share in...

XYZ Company earned $2.40 per share last year. If they paid out $0.91 per share in dividends and had an ROE of 12.6%, what is the sustainable growth rate?

Gamble Corp has a sustainable growth rate of 5.6%, an ROE of 13.4% and dividends per share of $1.82. If the price to earnings ratio is 12, what is the price of the stock?

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Solution of9) As given the data of XYZ Company, ROE= 12.6% OR 0.126 Sustainable growth sate = ? (EPS) Eamed Pershare = $2.40(b). As aiven the data of Gamble coop, sustainable growth Rate = 5.6% OR 0.056 ROE = 13.4 % OR 0.134 Dividend per Shade (DPS)(B) Dividend pay out Ratio = |- Dividend Retention Dividend pay out Ratto = -0.3957 = 0.6043 Dividend payout Ratio = 0.60437

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