Question
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these earnings
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 13% and their equity cost of capital is 10%. The expected growth rate for KTI's dividends is closest to ________.
A. 9.8% B. 8.7% C. 5.9% D. 7.3%
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
