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You Expect That KT Industries (KTI)will Have Earnings Per Share

Question 53

Multiple Choice

You expect that KT Industries (KTI) will have earnings per share of $3 this year and that they will pay out $1.50 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:


A) 6.0%
B) 7.5%
C) 4.5%
D) 3.0%

Correct Answer:

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