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You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $4 this year. Furthermore, you expect that they will pay out $1.75
You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $4 this year. Furthermore, you expect that they will pay out $1.75 of these earnings to shareholders in the form of a dividend at the end of this year. You estimate that LBE's return on new investments is 13% and their equity cost of capital is 12%. Your expected growth rate for LBE's dividends will be closest to: A. 2.9% B. 4.4% O C. 7.3% D. 6.8%
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