calculate Black & Decker predicted payout ratio and dividend yield controlling for differences in expected growth. Thanks Company Payout Ratio % Dividend Yield % Expected Growth % Fedders 11 1.2 11.0 Maytag 37 2.8 23.0 National Presto 67 4.9 13.5 Toro 15 1.5 16.5 Whirpool 30 2.5 20.5 Comp. Average 32 2.6 16.9 Black & Decker 24 1.3 23

calculate Black & Decker predicted payout ratio and dividend yield controlling for differences in expected growth. Thanks Company Payout Ratio % Dividend Yield % Expected Growth % Fedders 11 1.2 11.0 Maytag 37 2.8 23.0 National Presto 67 4.9 13.5 Toro 15 1.5 16.5 Whirpool 30 2.5 20.5 Comp. Average 32 2.6 16.9 Black & Decker 24 1.3 23

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter14: Distributions To Shareholders: Dividend And Share Repurchases

Section: Chapter Questions

Problem 2DQ

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tol Processing ng Help Save & Exit Submit Saved Practice Problems i Check my work Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend valuation model to compute the cost of common equity (also referred to as the required rate of return for common equity). Assume: Rf = 7% Km 10% = 1.6 D1 = $ 0.70 $ 19 8% %3D PO = nt a. Compute Ki (required rate of return on common equity based on the capital asset pricing model). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) ences Ki b. Compute Ke (required rate of return on common equity based on the dividend valuation model). (Do not round intermediate calculations, Input vour answer as a percent rounded to 2 decimal places.) < Prev 10 of 10 Next Mc Graw Hill 149 MacBook Air
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Company	Payout Ratio %	Dividend Yield %	Expected Growth %
Fedders	11	1.2	11.0
Maytag	37	2.8	23.0
National Presto	67	4.9	13.5
Toro	15	1.5	16.5
Whirpool	30	2.5	20.5
Comp. Average	32	2.6	16.9
Black & Decker	24	1.3	23