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  3. a. show the formula you use to solve the problems,

a. Show the formula you use to solve the problems, and the corresponding numbers in the...

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Finance

a. Show the formula you use to solve the problems, and thecorresponding numbers in the formula. Show all the steps.

b. Show all the inputs and outputs.


JetHair’searnings are $6 per share. The firm’s ROE is 50%and itsplowback ratio is 40%.

a. What is JetHair’sdividend for next year ?

b. What is the current stock price if its required rate ofreturn is 35%?

Answer & Explanation Solved by verified expert
3.6 Ratings (573 Votes)
a JetHairs Dividend for next year Step1 The Calculation of the Dividend Growth Rate g Dividend Growth Rate g Return on Equity x Plowback Ratio ROE x Plowback Ratio 50 x 040 20 Step2    See Answer
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Transcribed Image Text

a. Show the formula you use to solve the problems, and thecorresponding numbers in the formula. Show all the steps.b. Show all the inputs and outputs.JetHair’searnings are $6 per share. The firm’s ROE is 50%and itsplowback ratio is 40%.a. What is JetHair’sdividend for next year ?b. What is the current stock price if its required rate ofreturn is 35%?

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