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Linda_us
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Sidman Products common stock currently sells for $74 a share.

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Sidman Products' common stock currently sells for $74 a share. The firm is expected to earn $5.70 per share this year and to pay a year-end dividend of $3.00, and it finances only with common equity.

a. If investors require a 12% return, what is the expected growth rate? Round your answer to two decimal places.
%

b. If Sidman reinvests retained earnings in projects whose average return is equal to the stock's expected rate of return, what will be next year's EPS? [Hint: g = (1 - Payout r
Thanks for requesting me. I will post the solution for this question soon.

Have you seen my reply to your previous question.

Regards

Linda
Customer: replied 5 years ago.
Yes, I responded.


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Regards

Linda
Customer: replied 5 years ago.
Hi Linda, can you re-work b. please, just to verify.
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Customer: replied 5 years ago.
Alright. Thank you.

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