Expected growth is defined in this policy as having achieved.
Growth = ROE × (1 - payout ratio).
The expected growth rate is 9.75%.
How do you calculate expected growth rate?
- To calculate growth rates, divide the difference between the starting and ending values for the period under study by the starting value.
- Expected growth is defined in this policy as having achieved the requirement that students perform, on average, as well in their current grade or content as was typical for the same student in previous grades or contents when using the change scale to compare and allowing for a factor of regression to the mean.
- A dividend investor would consider a range of 35% to 55% to be healthy and appropriate. A company is well-established and a leader in its industry if it is expected to distribute about half of its earnings as dividends.
ROE = 15% = 0.15
Pay out Ratio = 35%.= 0.35
Growth = ROE × (1 - payout ratio).
= .15 (1-0.35) = 0.0975 = 9.75 %
To learn more about : Growth rates
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