How to investors expect past trends to continue


WACC The following table gives Foust Company’s earnings per share for the last 10 years. The common stock, 7.8 million shares outstanding, is now selling for $65.00 per share. The expected dividend at the end of the current year is 55% of the 2008 EPS.Because investors expect past trends to continue, g may be based on the historical earnings growth rate.

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Finance Basics: How to investors expect past trends to continue
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