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brutus co. expects an eps of $10 per share next period. currently, their plowback ratio is 0.5. however, the company has the opportunity to finance a new project that will earn an roe of 9% by cutting its dividend to $2.50 per share. if the brutus co's expected stock return is 9%, should they cut dividends to make the new investment?

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Answer: C

Explanation: Trust I am smart

User Alexsalo
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