Townsend is a holiday travel agent based in the south of London. The company is a no-growth

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Townsend is a holiday travel agent based in the south of London. The company is a no-growth firm with 2 million shares outstanding. The company is expected to earn a constant £10 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 8%, calculate the current price per share.

a. £200

b. £100

c. £62.5

d. £50

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