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MrRissso [65]
2 years ago
11

Stockholders of Dogs R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating an

ROE of 15% over the last 5 years but now believes that ROE will be 12% for the next 5 years. Given this, the firm's optimal dividend payout ratio is now ______.
Business
1 answer:
alexandr402 [8]2 years ago
8 0

Answer:

100%

Explanation:

Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management  has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE  will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now  100%

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