History of paying dividends equal

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EPS1=$5. It has a history of paying dividends equal to 20% of earnings. The expected cost of equity is 15% per year, and the expected ROE (return on equity) on the firm's future investments is 17% per year. Using the constant growth rate DDM model:

1. The expected growth rate of dividends?

2. Stock's PV?

3. The expected price of a share a year from now

Reference no: EM131090061

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