Question
Answered step-by-stepAsked by PrivateFieldSalamander26 on coursehero.com
Ontel Inc expects an EPS of $10 and DPS (dividend per share) of $6...
Ontel Inc expects an EPS of $10 and DPS (dividend per share) of $6 next year and expects to
maintain the same payout ratio for the foreseeable future. It has an opportunity to invest its
retained earnings at an ROIC of 15%.
a. What is Ontel's growth rate?
b. Given a cost of capital of 12%, what is Ontel's price per share?
Answer & Explanation
Solved by verified expertAnswered by ngamaumabuy on coursehero.com
<p>sectetur adipiscing elit.<strong>se</strong></p><p> </p><p>sectetur adipiscing e<strong>sect</strong></p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictu
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In
Step-by-step explanation
<p>sectet</p><p>sectetur a</p><p>sectetur adi</p><p>sectetur a</p><p> </p><p>sectetur adipiscing elit. Nam lac</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor</p><p>sectetur adipiscing elit. Nam lacinia pulvinar</p><p>sectetur adipiscing elit. Nam lacinia pulvinar torto</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellent</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis<strong>se</strong></p><p> </p><p>sectetur</p><p>sectetur adipiscing elit</p><p>sectetur adipiscing elit. Na</p><p>sectetur adipiscing elit. Nam lacinia pulvinar tortor nec</p><p>sectetur adipiscing elit. Nam lacinia pulvi<strong>sect</strong></p>
Get unstuck with a CliffsNotes subscription
Unlock every step-by-step explanation, download literature note PDFs, plus more.Get Access