What is the company’s expected Growth Rate for Earnings & Dividends?

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 What is the company’s expected Growth Rate for Earnings & Dividends?
  • What is the company’s expected Growth Rate for Earnings & Dividends?

  • Answers • 2 pages • 2019
  • The stock of company XYZ is currently price at $80 per share. It’s earnings this year (T=0) are $4.00 per share. It has paid out a dividend equal to 40% of its earnings for the past several years. It’s Return on Equity (ROE) has been 18%. 1. What is the company’s current Dividend Yield? Dividend Discount Model The market expects that companies similar to XYZ will display a rate of return of 13% per year 2. What is the company’s expected Growth Rate for Earnings & Dividends? 3. What di...
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