NoGrowth Corporation currently pays a dividend of $0 50 per quarter, and it will continue to pay this dividend forever What is the price per share of NoGrowth stock if the firms equity cost of capital is 15 ...

Plan We can use Eq 76 to calculate the price per share and we can use Eq 51 ...

NoGrowth Corporation currently pays a dividend of $0.50 per quarter, and it will continue to pay this

Question:

NoGrowth currently pays a of $0.50 per quarter, and it will continue to pay this forever. What is the price per share of NoGrowth stock if the firm’s equity is 15%?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...