KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KFC's retum on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KFC's dividends is closest to: O a. 6.0%. O b. 7.5%. O c. 11.25%. O d. 4.5%.
KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend. KFC's retum on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KFC's dividends is closest to: O a. 6.0%. O b. 7.5%. O c. 11.25%. O d. 4.5%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a
dividend. KFC's retun on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KFC's dividends is closest to:
O a. 6.0%.
O b. 7.5%.
O c. 11.25%.
O d. 4.5%.
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