Wisconsin has ROE of 21%, EPS of $3.50 and Dividend per share of $1.40. Dells...

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Finance

Wisconsin has ROE of 21%, EPS of $3.50 and Dividend per share of $1.40.

Dells has ROE of 17%, EPS of $2.75 and Dividend per share of $1.65.

The required return is 18% on each stock. Solve using excel formulas.

Choose all that are correct.

a) Wisconsin's growth rate = 12.6%

b) Dells' growth rate = 10.2%

c) Wisconsin's price = $17.95

d) Dells' price = $14.73

e) The dividend payout ratio for Wisconsin is 40% and for Dells is 50%

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ROE EPS Dividend per share Wisconsin Dells 21% 3.5 1.4 17% 2.75 1.65 Hint: Find payout ratio: Find plowback ratio: Find growth rate: Find price

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