Question
You expect TDK industries (TDK) will have earnings per share of $2.50 this year and expect that they will pay out $1.00 of these earnings
You expect TDK industries (TDK) will have earnings per share of $2.50 this year and expect that they will pay out $1.00 of these earnings to shareholders in the form of a dividend. TDKs return on new investments is 15% and their equity cost of capital is 12%. The value of a share of TDKs stock is.
A. 9%
B. 7.5%
C. 12%
D. 4.5%
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
12th Edition
0030258723, 9780030258725
