Question
You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $2.00 of these earnings
You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pay out $2.00 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:
| 7.5% | ||
| 3.0% | ||
| 5.0% | ||
| 4.5% |
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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
