Kirkevue Industries Pays Out All Its Earnings as Dividends and Has

Multiple Choice

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?

A) 0.83%
B) 15.33%
C) 18.23%
D) 17.97%
E) 12.35%