I was given a question on an exam that asked to calculate the annual growth rate using the follow information:
Annual dividend = .75cents EPS = $3
P/E = 13 RoE = 22%
Couldn't figure this out. Any idea? Thanks in advance.
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butters1218, bummer your thread hasn't had a response yet. Maybe one of these threads could point you in the right direction:
More suggestions...
I hope those threads give you a bit more insight.
Growth rate of what?
If it's dividend growth rate, then you want to use a dividend discount model.
I guess as a crude approximation dividend growth can be assumed as bottom line (I.e. Eps) growth.
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Et quisquam molestiae ratione. Incidunt ut perferendis dolor consequatur dolores doloribus. Omnis nisi ex esse quia quia omnis sed totam. Placeat laudantium enim consequuntur nisi.
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