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Lake Co Has Paid a Dividend $3 Per Share Out of of Earnings

Question 59

Multiple Choice

Lake Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40, what is the expected growth rate in dividends?


A) 7.5%
B) 8%
C) 12.5%
D) 5%

Correct Answer:

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