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Light Construction Machinery Company Has an Expected ROE of 11

Question 124

Multiple Choice

Light Construction Machinery Company has an expected ROE of 11%.The dividend growth rate will be _______ if the firm follows a policy of paying 25% of earnings in the form of dividends.


A) 3.0%
B) 4.8%
C) 8.25%
D) 9.0%
E) none of the above

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