Ktis return on new investments is 15 and their equity cost

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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%.What is the value of a share of KTI's stock?

Reference no: EM13573721

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