a firm is expected to earn $8 per share . the pay-out ratio is 60%and it will remain same. if the ROE of the firm is 25% and required rate of return on equity is 13% find the present value of growth

Your company has just successfully completed some R&D work that leads you to expect that its earnings and dividends will grow at a rate of 43.50% this year, 24.50% next year, after which growth should match the 6.00% industry average growth rate, which is a more sustainable rate. The last dividend paid (D0) was $1.40 and your firm's WACC is 12.54%. What is the value per share of your firm's stock?

Adobe Systems has come out with a new and improved product.  As a result, the firm projects an ROE of 22.5%, and it will maintain a plowback ratio of .50.  Its projected earnings are $3.75 per share. Investors expect an 18% rate of return on the stock. At what price and P/E ratio would you expect the firm to sell and what is the preset value of growth opportunities?

Frasier Cabinets wants to maintain a growth rate of 5 percent without incurring any additional equity financing. The firm maintains a constant debt-equity ratio of 0.55, a total asset turnover ratio of 1.30, and a profit margin of 9.0 percent. What must the dividend payout ratio be? HINT: Determine if the target growth rate is IGR/SGR. Next, use the formula to determine how much money (%) the firm can afford to payout to stockholders. You will also want to review the DuPont identity. Multiple Choice 26.26 percent 38.87 percent 49.29 percent 6113 percent 73,74 percent

The ROA of your firm is 5%. The firm also has a debt-asset ratio of 70%. If your firm reinvests 100% of its earnings, at what rate can your assets grow without having to change your capital structure? Further, at what rate can your assets grow without having to raise capital externally?   I know the formula for sustainable growth is ROE x b / 1 - ROE x b   Internal growth ROA x 1 - b / 1 - (ROA x 1- b)   But I do not know how to get the information with what is provided.  I think I'm missing a formula to go from ROA (which is the 5% provided) to ROE.   Can you show me how to solve this problem? Thank you in advance for your help.

What is the sustainable growth rate if the ROE is 17% and the payout ratio is 25%. a. 12.79% b. 8.00% c. 14.61% d. 8.62%

A firm wants a sustainable growth rate of 2.73 percent while maintaining a dividend payout ratio of 39 percent and a profit margin of 6 percent. The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?