You expect KT industries​ (KTI) will have earnings per share of $3 this year and expect that they will pay out $2.50 of these earnings to shareholders in the form of a dividend. ​ KTI's return on new investments is 16​% and their equity cost of capital is 12​%. The value of a share of​ KTI's stock is closest​ to:   A. $10.72   B. $16.07   C. $32.15   D. $26.79

Q: A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year.…

A: Given information: Price of the stock is $42.00 Dividend paid is $2.30 Cost of equity is 11%

Q: Alibaba Group has a share price of $25 today. If Alibaba Group is expected to pay a dividend of…

A: Given Information :  Current Share Price = $25 Expected Dividend Per Share = $0.75  Growth in stock…

Q: 4. You expect RMT company will have earnings per share of AED 10 this year and expect that they will…

A: Dividend is the part or share of profits being distributed to the shareholders. Dividend growth rate…

Q: Anle Corporation has a current stock price of $21.38 and is expected to pay a dividend of $1.00 in…

A: Current price per stock = p0 = $21.38Next Year expected Dividend per share = d1 = $1Next Year price…

Q: b) Lanigan bank is funded 100% by equity. Last year's dividend was £2.60. The bank expects to be…

A: Step 1: Given Value for Calculation last year dividend = d = $2.60Growth rate = g = 2%Expected Rate…

Q: Company X just paid (year 0) a dividend of $1.20. If you expect Company X's dividends to grow at 7%…

A: As per the constant growth rate model, the price of the bond can be found by considering the…

Q: The current book value per share of B.L. Black & Sons is $4.5 and the required return on the stock…

A: Return on Equity (ROE) = (Expected earnings per share / Book value per share )  x100=>ROE =…

Q: Jumbuck Exploration has a current stock price of $2 and is expected to sell for $2.10 in one years…

A: Here, Current stock price (P0) = $2 Expected price after 1 year (P1) = $2.10 Dividend (D) = $0.23

Q: Calculate the cost of capital for a new common stock issue by a firm that paid a $1.80 dividend last…

A: Current dividend = d0 = $1.80 Growth rate = g = 7% Price of common stock = p = $30

Q: Slow 'n Steady Enterprises currently pays an annual dividend of $1.40 /share. Investors expect that…

A: The present value of stock with indefinite dividend payment with no growth is the dividend divided…

Q: One year ago, you purchased a stock for $72.42. Today it is selling for $66.68. During the year you…

A: Percentage return refers to the return that is to be earned over the amount of investment made…

Q: IBM expects to pay a dividend of $2 next year and expects these dividends to grow at 8% a year. The…

A: To Find: Cost of equity capital

Q: Panko corporation is expected to have free cash flow to equity (FCFE) of 1.5€ per share in year 1,…

A: Given,FCFE (Free cash flow of Equity) 1=1.5FCFE2=2FCFE3=2.5

Q: Dream As You Can is expected to pay $3 dividends each year over the next three years. It is then…

A: Solution:Gordon Growth Model (GGM) is the equity model which measures intrinsic value of share.For…

Q: You expect X-Co will pay a dividend of $76 million and repurchase $100 million of its common shares…

A: To calculate the present value of the future cash flows, we need to draw a timeline of the expected…

Q: KFC is expected to have earnings per share of $4 this year and expect that they will pay out $1.50…

A: The expected growth rate can be referred to as the return expected by the investors from an…

Q: Krell Industries has a share price of $22.58 today. If Krell is expected to pay a dividend of $0.87…

A: Dividend yield, capital gain and return on investment are all financial ratios an investor would…

Q: Stability Inc. has maintained a dividend rate of $4 per share for many years. The same rate is…

A: Here we have to use the dividend discount model and value of stock is nothing but the present value…

Q: Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this…

A: Solution:Dividend Discount Model (DDM) is the equity model which calculates the current value of…

Q: 3. Mando Inc. next year earnings per share is expected to be $7. Its return on equity is 20%, which…

A: Given, Earnings per share is $7. Return of equity 20% Market required return is 12%

Q: the value of a share of​ NoGrowth's stock is closest​ to:

A: Stock refers to the total amount of capital which is raised by the corporations by the issue of…

Q: A company has stock which costs $42.00 per share and pays a dividend of $2.30 per share this year.…

A: The dividend discount model is the model of stock valuation that assumes that the current value of a…

Q: The Boston Brewing Company is planning on issuing common stock at a market price of $13 per share.…

A: COST OF EQUITY  Cost of Capital is the minimum rate of return that must be earned on investments, in…

Q: 1. Company Yoyo currently pays out a dividend of £2 per share. It reinvests 1/3 of earnings in…

A: Growth rate g = Retention ratio * Return on Investment ( ROI ) Thus, g = 13×15% g = 5%   Current…

Q: You expect KT industries​ (KTI) will have earnings per share of $ 4 this year and expect that they…

A: Dividend refers to portion of total earnings of entity that is shared with common stockholders.…

Q: Anle Corporation has a current stock price of $15.42 and is expected to pay a dividend of $0.85 in…

A: As per the given information:

Q: Krell Industries has a share price of $21.35 today. If Krell is expected to pay a dividend of $ 0.61…

A: A capital is a broad term known as cash or liquid asset, that has monetary value. It is the…

Q: Suppose Kennedy Corp. just paid a dividend (Do) of $1.42 per share. This dividend is expected to…

A: We can determine the dividend in year 6 by using the formula below: Dividend in year 6 = Current…

Q: Krell Industries has a share price of $22.12 today. If Krell is expected to pay a dividend of $0.94…

A: Share price today (P0) = $22.12Next year dividend (D1) = $0.94Next year share price (P1) =…

Q: Von Bora Corporation (VBC) is expected to pay a $3.50 dividend at the end of this year. If you…

A: Dividend discount model:A technique for valuing a company's shares by projecting the current value…

Q: Jumbuck Exploration has a current stock price of $2.55 and is expected to sell for $2.68 in one…

A: The cost of equity refers to the equity expense that the company bears to employ the equity capital…

Q: IBM expects to pay a dividend of $4 next year and expects these dividends to grow at 7% a year. The…

A: Next year dividend = D1 = $4 Growth rate = g = 0.07 or 7% Price per share = P0 = $90 Cost of equity…

Q: which of the following would be expected to be closest to​ Matilda's stock​ price?

A: Stock valuation is the method of finding the the value of the stock of a company. The present…

Q: Gamma Corporation just paid a dividend of $3.00 per share on its common stock. Dividends are…

A: Value of the share is the sum of the present value of all the dividends.