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johnpaech johnpaech
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Posts: 1098
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6 years ago
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%
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 642 times
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wrote...
6 years ago
A
Explanation:  A) rE = Div1/P0 + g
.12 = .045 + g so g = .075
johnpaech Author
wrote...
5 years ago
This course drove me insane!
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