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A company reported the following financial information:

Income Statement Information
	Year Ended December 31,
	20X2	20X1
Earnings per share	1.2800	0.8000
Dividends per share	0.3200	0.2000

Balance Sheets
	As of December 31,
	20X2		20X1
Total shareholders' equity per share	2.56		1.60

This company has always had and is expected by investors to maintain constant tax rate, number of shares outstanding, return on equity, payout ratio, and sustainable growth rate in perpetuity. Based on this information, what is this companys sustainable growth rate in 20X2? Your final answer must be in percent and entered without the percent sign.

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UESTION 22

1. A company reported the following financial information:

   Income Statement Information
   	Year Ended December 31,
   	20X2	20X1
   Earnings per share	18.00	18.00
   Dividends per share	18.00	18.00

   Other Financial Information
   	Year Ended December 31,
   	20X2	20X1
   Sustainable growth rate	0.00%	0.00%

   This company has always had and is expected by investors to maintain constant tax rate, number of shares outstanding, return on equity, payout ratio, and sustainable growth rate in perpetuity. This company pays a dividend once per year, in annual increments, with the next dividend expected to be paid in one year. Equity investors have a 6.25% cost of equity (APR with annual compounding). Based on this information, what price to earnings ratio would you expect this company to have at the end of 20X2?

   3-

   A companys 2021 fiscal year starts today. The CEO of this company provided the following guidance for the 2021 fiscal year:

   Total assets per share at start of fiscal year...................... $200

   Book value of equity per share at start of fiscal year........ $100

   Expected return on equity.............................................. 20%

   Payout ratio................................................................... 60%

   Tax rate......................................................................... 20%

   Return on equity is calculated using beginning of the year book value of equity per share. The CEO said the company will make a single dividend payment at the end of the 2021 fiscal year. Based on this information, what addition to retained earnings per share should you expect this company to have during the 2021 fiscal year? Your final answer must be in dollars and entered without the dollar sign.

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