A stock is expected to pay $2.60 per share every year indefinitely and the equity cost of
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Question:
A stock is expected to pay $2.60 per share every year indefinitely and the equity cost of capital for the company is 10%. What price would an investor be expected to pay per share next year?
A $13.00
B. $19.50
C $6.50
D. $26.00
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: