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Title: Luther Industries has a dividend yield of 4.5% and and a cost of equity capital of 12%. Luther ...
Post by: johnpaech on Nov 19, 2017
Luther Industries has a dividend yield of 4.5% and and a cost of equity capital of 12%.  Luther Industries dividends are expected to grow at a constant rate indefinitely.  The grow rate of Luther's dividends are closest to:
A) 7.5%
B) 5.5%
C) 16.5%
D) 12%


Title: Re: Luther Industries has a dividend yield of 4.5% and and a cost of equity capital of 12%. Luther ...
Post by: deusmaroto on Nov 19, 2017
A
Explanation:  A) rE = Div1/P0 + g
.12 = .045 + g so g = .075


Title: Re: Luther Industries has a dividend yield of 4.5% and and a cost of equity capital of 12%. Luther ...
Post by: johnpaech on Aug 1, 2018
This course drove me insane!