Hightech Inc. has a ROE of 15%, EPS of $1.80, and DPS of $0.72. Estimate its...

Question

Question

Hightech Inc. has a ROE of 15%, EPS of $1.80, and DPS of $0.72. Estimate its growth rate:

Answer 1

Answer #1

Retention ratio

=1-dividend payout

=1-(0.72/1.80)

=0.60

Estimate its growth rate

=ROE*Retention ratio

=15%*0.60

=9.0%

the above is answer..

Answer 2

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