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Lum can finance its capital budget with retained earnings throughout the foreseeable future, and Its stock price is expected to grow at a constant rate.
Lum can finance its capital budget with retained earnings throughout the foreseeable future, and Its stock price is expected to grow at a constant rate. Lum's expected long-run sustainable return on equity (ROE) is 16%, and the firm expects to maintain its dividend payout ratio of 50%. if Lum u5e5 the DCF approach to calculate its cost of retained earnings, what is the expected dividend yield on Lum's stock? 2.0% 5.0% 4.5% 6.5% 7.7%
DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION.
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