If MNGO Corporation’s net income is $800 million, its common equity is $3600 million, the management decided to distribu

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answerhappygod
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If MNGO Corporation’s net income is $800 million, its common equity is $3600 million, the management decided to distribu

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If MNGO Corporation’s net income is $800 million, itscommon equity is $3600 million, the management decided todistribute only 25% from the firm’s earning and thefirm paid a $15 dividend last year.
I. Calculate the growth rate?
II.Compute the value of the common stock if the investorsrequire 20%.
III.Explain what will happen to the valueof the common stock if the MNGO decidesto decrease the payout rate
IV.The stock is selling for $ 130 should you make theinvestment?
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