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You expect KT industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $2.50 of these earnings
You expect KT industries (KTI) will have earnings per share of $5 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 11%. The value of a share of KTI's stock is closest to:
A-50
B-100
C-83.33
D-33.33
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