The Lory Company Had Net Earnings of $127,000 This Past

question 17

Multiple Choice

The Lory Company had net earnings of $127,000 this past year. Dividends of $38,100 were paid. The company's equity was $1,587,500. If Lory has 100,000 shares outstanding with a current market price of $11.625 per share,and the growth rate is 5.6%,what is the required rate of return?

• A) 4.2%
• B) 6%
• C) 9%
• D) 14%
• E) None of these.

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Definitions:

Rectally

Pertaining to or administered through the rectum, often used for medications when oral intake is not possible or advised.

Thumb

The first digit of the human hand, positioned opposite the other four fingers and enabling a powerful grip.

Dyspnea

Difficult or labored breathing.

Cheyne-Stokes

A breathing pattern characterized by alternating periods of apnea and hyperventilation.