Luther Industries Has a Dividend Yield of 4

question 48

Multiple Choice

Luther Industries has a dividend yield of 4.5% and 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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Definitions:

Promotion Alternatives

Different strategies companies use to market their products or services to consumers or other businesses.

Promotional Mix

The combination of marketing tools used by a business to execute its marketing strategy, including advertising, sales promotion, public relations, personal selling, and direct marketing.

Direct Marketing

The practice of delivering promotional messages directly to potential customers on an individual basis rather than through a mass medium.

Marketing Communications

The various methods and tools used by a company to relay messages and information to market its products or services.