Solarpower Systems expects to earn
$20
per share this year and intends to pay out
$10
in dividends to shareholders (so,
Upper D 10 (D0=$10)
and retain
$10
to invest in new projects with an expected return on equity
of
19%.
In the future, Solarpower expects to retain the same dividend
payout ratio, expects to earn a return of
19%
on its equity invested in new projects, and will not be
changing the number of shares of ordinary shares outstanding....