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

question 37

Multiple Choice

Lory Company had net earnings of $127,000 this past year of which $46,200 was paid out in dividends.The company's equity was $1,587,500.Lory has 200,000 shares outstanding with a current market price of $11.63 per share.Both the number of shares and the dividend payout ratio are constant.What is the required rate of return if the growth rate is 5.6 percent?

• A)8.42 percent
• B)6.67 percent
• C)7.70 percent
• D)7.39 percent
• E)8.24 percent

---

Definitions:

Incidence

The occurrence, rate, or frequency of a disease, crime, or something undesirable within a given population over a specific period of time.

Mortality

The occurrence of death within a population; often used in statistics to quantify the ratio of deaths in a particular population during a specific time frame.

Breast And Prostate Cancer

Types of cancer, with breast cancer occurring in the breast tissue and prostate cancer originating in the prostate gland, both with various treatment options and outcomes.

Lung Cancer

A type of cancer that begins in the lungs, often associated with smoking and environmental toxins.