You Expect KT Industries (KTI)will Have Earnings Per Share of $3

question 95

Multiple Choice

You expect KT Industries (KTI) will have earnings per share of $3 this year and expect 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 value of a share of KTI's stock is closest to:

• A)$39.25.
• B)$20.00.
• C)$33.35.
• D)$12.50.

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Definitions:

Heritability Coefficient

A statistical estimate that indicates the proportion of the variance in a trait which is attributable to genetic variation within a population.

Non-twin Relatives

Family members who are not twins but share a genetic relationship, such as siblings or cousins.

Traits

Enduring characteristics or tendencies that define an individual's behavior, thought patterns, and emotional responses.

Allele

A particular variant, or form, of a gene; most genes have two or more alleles.