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Usimov [2.4K]
3 years ago
6

You expect KT industries​ (KTI) will have earnings per share of $ 6 this year and expect that they will pay out $ 2.25 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 15​%. The value of a share of​ KTI's stock is closest​ to:
Business
1 answer:
snow_lady [41]3 years ago
7 0

Answer:

Value of a share = $15

Explanation:

<em>According to the </em><u><em>dividend valuation model</em></u><em>, the value of a share is the present value of expected dividend discounted at the required rate of return. </em>

This model is expressed in the formula below;

Value of a share = D/Ke

D- dividend payable in year one

Ke- cost of equity

Value of a share = 2.25/0.15

Value of a share = $15

Value of a share = $15

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Answer:

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For example a company may want a strategic change, an ambiguous change, an innovative change, or a stable change.

In the given scenario GE appointed Jeff Immelt a white male and long-time GE executive to succeed Jack Welch also a white male as their new CEO.

There is no change in the profile of the new leader, and the fact that he is a long-time GE executive shows they want to maintain the same traditions as before.

So this is a stable strategy

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Mel operates a video game store. His records indicate that he had sales of $78,000. Customers returned $1,500 worth of video gam
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Answer:

D. $57,500

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3 years ago
Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and £4
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Answer:

B. £0.2055/$

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£0.2055/$

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Which of the following methods improves the transition from one sentence to the next in a formal report?
IRINA_888 [86]

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The correct answer is letter "A": Using tabulations and enumerations.

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