An analyst has determined that a firm has A payout ratio of 75% A return on...

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An analyst has determined that a firm has A payout ratio of 75% A return on equity (ROE) of 18% An earnings per share (EPS) o

Answer 1

Answer #1

EPSO = $5.35 Payout ratio = 75% DPSO = EPS1*(1+g) = $5.35 * 75% = $4.0125 Growth rate, g = 4.5% DPS1 = DPSO*(1+g) = $4.0125*(

Answer 2

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