Assume a company's retention rate is 70 percent, its cost of equity capital is 12 percent, and its forecasted earnings per share are $4. If the company's ROE is 10 percent, what is the company's forecast growth rate, the forecast dividend and the share price?

Question

Quizplus · Accepted Answer

The Answer of Assume a company's retention rate is 70 percent, its cost of equity capital is 12 percent, and its forecasted earnings per share are $4. If the company's ROE is 10 percent, what is the company's forecast growth rate, the forecast dividend and the share price?

Assume a Company's Retention Rate Is 70 Percent, Its Cost