Question
17) You expect ZOZO Inc. will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings
17) You expect ZOZO Inc. will have earnings per share of $3 this year and expect that they will
pay out $1.50 of these earnings to shareholders in the form of a dividend. ZOZO's return on new
investments is 15% and their equity cost of capital is 12%. The expected growth rate for
ZOZO's dividends is closest to:
A) 6.0%
B) 7.5%
C) 4.5%
D) 3.0%
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
