Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: ahriuashd on Jul 9, 2019
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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?
◦ 0.83%
◦ 18.23%
◦ 15.33%
◦ 17.97%
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0.83%
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TY
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You're welcome