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Luther Industries Has a Dividend Yield of 4

Question 23

Multiple Choice

Luther Industries has a dividend yield of 4.5% and a cost of equity capital of 10%. Luther Industries' dividends are expected to grow at a constant rate indefinitely. The growth rate of Luther's dividends is closest to ________.


A) 5.5%
B) 14.5%
C) 11.0%
D) 5.0%

Correct Answer:

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