Question

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?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

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

Add a comment
Know the answer?
Add Answer to:
XYZ Company earned $2.40 per share last year. If they paid out $0.91 per share in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT