At what rate would the company net earnings be growing


Response to the following problem:

Find the EPS, P/E ratio and dividend yield of a company that has 5 million shares outstanding (the shares trade in the market at $25), earns 10% after taxes on annual sales of $150 million and has a dividend payout ratio of 35%. At what rate would the company's net earnings be growing if the share had a PEG ratio of 2.0?

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Financial Accounting: At what rate would the company net earnings be growing
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