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Luther Industries Has a Dividend Yield of 4

Question 4

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 grow rate of Luther's dividends are closest to:


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

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