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Find return on equity if dividend payout ratio is given

Assume Conservative Corporation is 100% equity financed. Calculate the return on equity given the following information:

1. Earnings before taxes = $2,000

2. Sales = $5,000

3. Dividend payout ratio = 60%

4. Total asset turnover = 2.0

5. Applicable tax rate = 50%

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Finance Basics: Find return on equity if dividend payout ratio is given

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return on equity if dividend payout ratio is given

Reference No:- TGS0552536

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Accounts receivable outstanding

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find return on equity if dividend payout ratio is given

Reference No:- TGS0552536

Recent Questions Asked Finance Basics

Q : Accounts receivable outstanding

Q : Calculate the market price per share of wam

Q : Methods to evaluate the effectiveness

Q : Annual ocf for the project

Q : Find return on equity if dividend payout ratio is given

Q : Find the year interest rate that is expected for year two

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Q : What is the real risk-free rate of return

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