Lake Co Has Paid a Dividend $3 Per Share Out of of Earnings

question 59

Multiple Choice

Lake Co. has paid a dividend $3 per share out of earnings of $5 per share. If the book value per share is $40, what is the expected growth rate in dividends?

• A) 7.5%
• B) 8%
• C) 12.5%
• D) 5%

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Definitions:

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An accounting approach that assigns costs to products or services based on the resources they consume, aiming for more accurate cost allocation.

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Activity-based Costing

Activity-based costing involves identifying and assigning costs to overhead activities and then assigning those costs to products or services based on their consumption of those activities, offering detailed insights into cost drivers.

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Arrangements of flowers often used for decorative purposes or given as gifts for special occasions, composed of various types of flowers and foliage.