There is a general consensus among analysts that Portis Inc. has a sustainable dividend growth rate...
There is a general consensus among analysts that Portis Inc. has a sustainable dividend growth rate of 5.5%. Given that Portis pays out 25% of its net incomes as dividends each year, what is the return on equity (i.e. ROE) for this firm?
Question 23 options:
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5.50% |
|
|
7.33% |
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|
Not enough information. |
|
|
4.00% |
Homework Answers
rate positively ..
| we know that | |||
| ROE = | Growth rate /(1-payout ratio) | ||
| 5.5%/(1-25%) | |||
| 7.33% | |||
| ROE = | 7.33% | ||
| Ans = | 7.33% | ||
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There is a general consensus among analysts that Portis Inc. has
a sustainable dividend growth rate...
There is a general consensus among analysts that Portis Inc. has a sustainable dividend growth rate...
There is a general consensus among analysts that Portis Inc. has a sustainable dividend growth rate of 5.5%. Given that Portis pays out 25% of its net incomes as dividends each year, what is the return on equity (i.e. ROE) for this firm? Not enough information. 4.00% 7.33% 5.50%
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