QUESTION ? You expect IT Industries ( KIL ) will have earnings per share of $3 this year and expect that they will pay out $1.50 of these earnings to shareholders in the form of a dividend . TI's return on new investments is 15 / and their equity cost of capital is 12% . The value of a share of ITT 's stock is closest to $39. 25 $20.00 $33.35 $ 12.50