On their latest income statement, Anna's Data Processing reported sales of $723,000, costs of $411,200,...
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On their latest income statement, Anna's Data Processing reported sales of $723,000, costs of $411,200, depreciation of $121,000, and dividends of $84,410. The company's ROE is 8.5 percent, and they face a 21 percent tax rate. Assuming the ratio of dividends to earnings in constant, estimate the growth rate of dividends.
growth rate-
Anna's Data Processing just paid a dividend of $4.00, and their common stock is priced at $71.70 per share. Calculate the required return on equity.
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