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Luther Industries Has a Dividend Yield of 4

Question 71

Multiple Choice

Luther Industries has a dividend yield of 4.5% and a cost of equity capital of 12%.Luther Industries dividends are expected to grow at a constant rate indefinitely.The growth rate of Luther's dividends is closest to:


A) 7.5%.
B) 5.5%.
C) 16.5%.
D) 12%.

Correct Answer:

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