Starting with the initial conditions
Fin550 fin560 4. Currently, the dividend-payout ratio (D/E) for the aggregate market is 60 percent, the required return (k) is 11 percent, and the expected growth rate for dividends (g) is 5 percent. a. Compute the current earnings multiplier. b. You expect the D/E payout ratio to decline to 50 percent, but you assume there […]
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