Extruded elements had net income of 25000000 last year and

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Extruded Elements had Net Income of $25,000,000 last year, and $26,250,000 this year (in line with its long-term earnings growth rate). There are 4,000,000 shares outstanding, and the firm follows a policy of paying 30% of its earnings out as dividends

the required rate of return on extruded's shares is 13%. what is the share price today based on the Gordon growth model?

Question 2

Bavarian brewhouse had earnings per share of $2.50 in 2004 and paid out a dividend per share of $1.45 that same year. Earnings per share are expected to be $3.25 in 2005.

Explain what was bavarian brewhouse's dividend payout ratio in 2004?

Reference no: EM13363920

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