You expect KT industries (KTI) will have earnings per share of $ 4 this year and expect that they will pay out $ 1.00 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KTI's dividends is closest to: a: 6.8 b. 11.3 c.4.5 d. 9

You expect KT industries (KTI) will have earnings per share of $ 4 this year and expect that they will pay out $ 1.00 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 12%. The expected growth rate for KTI's dividends is closest to: a: 6.8 b. 11.3 c.4.5 d. 9

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 6P

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