Internet Industries expects to earn $5.00 for the coming year,and pay a $2.00 dividend.Its ROA is 13 percent,while its leverage factor is 1.7.
(a)Calculate the expected growth rate in dividends.
(b)Given a required rate of return of 17 percent,determine the estimated price for High Tech,Inc.,common stock.
(c)Calculate the expected dollar dividend two periods from now.

Question

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The Answer of Internet Industries expects to earn $5.00 for the coming year,and pay a $2.00 dividend.Its ROA is 13 percent,while its leverage factor is 1.7.
(a)Calculate the expected growth rate in dividends.
(b)Given a required rate of return of 17 percent,determine the estimated price for High Tech,Inc.,common stock.
(c)Calculate the expected dollar dividend two periods from now.

Internet Industries Expects to Earn $5