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pugu QUESTION 18 1 p You expect KT Industries (KTI) will have earnings per share of $3 this year and expect that they will pa
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Answer #1

Answer: Correct option is 5%
Growth =ROE*(1-dividend payout ratio)
Dividend payout ratio=Expected dividend/Expected EPS=2/3
Return on new investments or ROE=15%

Growth =15%*(1-2/3)=0.05 or 5%

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