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Yeeeee89 Yeeeee89
wrote...
Posts: 483
4 years ago
Kirkevue Industries pays out all its earnings as dividends and has a share price of $24. In order to expand, Kirkevue announces it will cut its dividend payments from $2.00 to $1.80 per share and reinvest the retained funds. What is the growth rate that should be achieved on the reinvested funds to keep the equity cost of capital unchanged?

▸ 0.83%

▸ 18.23%

▸ 15.33%

▸ 17.97%
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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4 years ago
0.83%
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