Kinston Industries Just Announced That It Will Cut Its Dividend

question 64

Multiple Choice

Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 per share and use the extra funds to expand its operations.Kinston's dividends were expected to grow at a 2% rate,and its share price was $37.50.With the new expansion,Kinston dividends are expected to grow at a 5% rate.Kinston's share price following this announcement should be:

• A)$20.00.
• B)$30.00.
• C)$37.50.
• D)$40.00.

Appreciate the importance of comparative financial statements and the role of intracompany and intercompany comparisons in enhancing consistency and comparability.

Understand the general treatment of expenses in interim financial statements and their classification.

Comprehend the roles and responsibilities of auditors and the significance of audit reports in public companies.

Identify and understand various financial ratios and their implications for business operations and investment decisions.

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