Spencer supplies stock is currently selling for 60 a share


Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.70. a. If investors require a 9% return, what rate of growth must be expected for Spencer? Round your answer to two decimal places. ? % b.If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, then what will be next year's EPS? Round your answer to the nearest cent.

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Finance Basics: Spencer supplies stock is currently selling for 60 a share
Reference No:- TGS0614727

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