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If Pepperdine, Inc.'s return on equity is 17 percent and the management plans to retain...

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Finance

If Pepperdine, Inc.'s return on equity is 17 percent and the management plans to retain 57 percent of earnings for investment purposes, what will be the firm's growth rate? Part 1 The firm's growth rate will be %. (Round to two decimal places.)

Header Motor, Inc., paid a $2.82 dividend last year. At a constant growth rate of 8 percent, what is the value of the common stock if the investors require a 15 percent rate of return? Part 2 The value of the common stock is $ . (Round to the nearest cent.)

Calculate the value of a preferred stock that pays a dividend of $5.50 per share when the market's required yield on similar shares is 11 percent. Part 3 The value of the preferred stock is $ .(Round to the nearest cent.)

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