Question #93
Reading: Reading 20 Discounted Dividend Valuation
PDF File: Reading 20 Discounted Dividend Valuation.pdf
Page: 36
Status: Unattempted
Question
Dynamite, Inc., has current earnings of $26, current dividend of $2, and a returned on equity of 18%. What is its sustainable growth?
Answer Choices:
A. 14.99%
B. 16.62%
C. 13.37%
Explanation
g = [1 − ($2 / $26)]0.18 = 16.62%