1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pantera1 [17]
3 years ago
15

You expect KT Industries (KTI) will have earnings per share of $5 this year and expect that they will pay out $1.25 of these ear

nings to shareholders in the form of a dividend. KTI's return on new investments is 13%. The expected growth rate for KTI's dividend is closest to ______.
Business
1 answer:
sleet_krkn [62]3 years ago
7 0

Answer:

9.75%

Explanation:

EPS = Earning per share = $5

DPS = Dividend per share  $1.25

ROI = return on investment = 13%, or 0.13

RR = Retention rate = (EPS - DPS)/EPS = ($5 - $1.25)/$5 = 0.75, or 75%

Growth = RR * ROI = 13% * 75% = 9.75%

Therefore, the expected growth rate for KTI's dividend is closest to 9.75%

You might be interested in
Operations management is​ applicable:
REY [17]

Answer:

b) To the manufacturing sector exclusively.

Explanation:

Operations management

It is one of the administration of the business practice , which enable to create very high efficiency within the organisation .

This administration is concerned with converting the labor and the material into services and goods , in order to maximize the profit of the organization .

The operations management team attempt to balance out the cost with the revenue in order to get the highest net operating profit possible .

It is exclusive to the manufacturing sector only .

4 0
3 years ago
Your immediate supervisor is a nice person. He helps you solve your problems and gives valuable advice. You admire your supervis
ryzh [129]

Answer:

(E)

Explanation:

Referent power is effective in any form of business activity. It is something which inspires the employees and to see their managers as a role model. In the above example, my supervisor has referent power over me because I consider him my role model. Some supervisors have certain interpersonal skills which help them to become a role model and a good manager.

3 0
3 years ago
When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at
mestny [16]

Answer:

Predatory pricing.

Explanation:

When Lofonift Inc. introduced its flagship product, an MP3 player, it captured the MP3 player market by offering its product at the lowest price in the market. This gradually forced many of its competitors out of business. Once its competitors were out of business, Lofonift Inc. raised its prices. In this scenario, Lofonift Inc. most likely indulged in predatory pricing.

Predatory pricing is a strategy used by some business owners to reduce the cost of a particular commodity or item to the lowest possible amount such that the available competitors will be driven out of business.

8 0
3 years ago
Assume that Kish Inc. hired you as a consultant to help estimate its cost of common equity. You have obtained the following data
Kobotan [32]

Answer:

Cost of equity= 10,50%

Explanation:

The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Cost of equity= (D1/P0)+g

D1= next year dividend (D0*

P0=actual price

g= growth rate of dividends

In this exercise:

D1=D0*(1+g)=0,90*1,07=$0,963

P0=$27,50

g=0,07

Cost of equity= 0,963/27,5+0,07=0,1051=10,50%

8 0
3 years ago
A college of business building that has classrooms on the first floor, faculty offices on the second floor, and graduate assista
AVprozaik [17]

Answer:

<em><u>Functional </u></em>

Explanation:

<em>Function</em><em>.</em><em> </em><em>a </em><em>relationship</em><em> </em><em>in </em><em>which </em><em>f</em><em>or </em><em>every </em><em>input</em><em> </em><em>there </em><em>exactly</em><em> </em><em>one </em><em>output</em><em>.</em>

5 0
2 years ago
Other questions:
  • If you are a project manager and have the choice of forming your core team either before or after charter approval, which would
    12·1 answer
  • Kayla is a supervisor who manages a production line. she spends several hours each week developing specific employee work assign
    13·1 answer
  • Which best describes an opportunity cost?
    12·2 answers
  • When not responding to e-mails, the lawyer on call is encouraged to actively pursue cases that potentially could lead to large s
    8·1 answer
  • The steps (in order) in the disruptive innovation cycle is ________. select one:
    9·1 answer
  • Jackson is conducting interviews to identify patterns in consumer decision making for high-involvement products. Which type of i
    15·1 answer
  • If analytical procedures are performed with no indications of likely​ misstatements, ARIA will​ ________ and the sample size wil
    5·1 answer
  • What are the five key steps to applying the revenue recognition principle? 2. What are indicators that control has passed from t
    15·1 answer
  • Equipment costing $70,000 with a salvage value of $14,000 and an estimated life of 8 years has been depreciated using the straig
    6·2 answers
  • Monique has held several different positions while attending high school. She has worked in retail sales, as a server at a resta
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!