Business, 17.06.2021 21:40 giovney

23) Company Q's current ROE is 16%. It pays out 60% of earnings as cash dividends. Current book value per share is $50. Book value per share will grow as Q reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE down to 12% and the payout ratio increases to 0.8. The cost of capital is 10%. (12 points) 1.What are Q's EPS and dividends next year

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23) Company Q's current ROE is 16%. It pays out 60% of earnings as cash dividends. Current book valu...