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You expect TDK industries (TDK) will have earnings per share of $2.50 this year and expect that they will pay out $1.00 of these earnings to...

You expect TDK industries (TDK) will have earnings per share of $2.50 this year and expect that they will pay out $1.00 of these earnings to shareholders in the form of a dividend. TDK return on new investments is 15% and their equity cost pf capital is 12%. THe expected growth rate for KTI's dividends is closest to:

a. 12%

b. 7.5%

c. 9.0%

d. 4.5%

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