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Choose two firms of interest from fiance.yahoo.com, finance. google.com, or money.msn.com and download their financial statements.
For each firm:

a. prepare the ROE, the number of shares outstanding, the dividends per share, and the net income.

b. Compute the sustainable growth rate (g = b * ROE), where b equals the plowback ratio.

c. find out the total amount of dividends paid (dividends * number of shares outstanding), the dividend payout ratio (total dividends paid/net income), and the plowback ratio (1 - dividend payout ratio).

d. What does this information reveal about the ROE for the firms you selected?

Be sure to include the link for the financial statements that you select.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939180

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