You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $5 this year....

 

Transcribed Image Text:

You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $5 this year. Furthermore, you expect that they will pay out $1.25 of these eamings to shareholders in the form of a dividend at the end of this year. You estimate that LBE's return on new investments is 16% and their equity cost of capital is 12%. Your expected growth rate for LBE's dividends will be closest to: ? You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $5 this year. Furthermore, you expect that they will pay out $1.25 of these eamings to shareholders in the form of a dividend at the end of this year. You estimate that LBE's return on new investments is 16% and their equity cost of capital is 12%. Your expected growth rate for LBE's dividends will be closest to: ?

Answer rating: 100% (QA)

To estimate the expected growth rate of Liebendauer Ente... View the full answer