Assume an average dividend payout rate of 60% for U.S.companies and 35% for Japanese companies.Suppose the average P/E ratio for Japanese firms is 38 and 16 for U.S.firms.Based on the dividend growth model,in order for Japanese companies to have the same 12% average cost of equity capital estimated for U.S.companies,how much higher would the Japanese annual earnings growth rate have to be?

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The Answer of Assume an average dividend payout rate of 60% for U.S.companies and 35% for Japanese companies.Suppose the average P/E ratio for Japanese firms is 38 and 16 for U.S.firms.Based on the dividend growth model,in order for Japanese companies to have the same 12% average cost of equity capital estimated for U.S.companies,how much higher would the Japanese annual earnings growth rate have to be?

Assume an Average Dividend Payout Rate of 60% for U