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

question 98

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 expected growth rate for KTI's dividends is closest to:

• A)6.0%
• B)7.5%
• C)4.5%
• D)3.0%
• E)2.0%

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Definitions:

Past Reinforcements

The influence of previously experienced rewards or punishments on present behavior, a concept frequently discussed in behaviorism and conditioning theories.

Dichotomized Construct

A concept or variable that is divided into two mutually exclusive categories or groups.

Genetically Determined

Refers to traits or characteristics that are specified by an individual's DNA.

Hierarchy Of Needs

A theory proposed by Abraham Maslow outlining a five-tier model of human needs, ranging from basic physiological needs to self-actualization.