Question
7) Company A has a current stock price of $90 and is expected to pay a $2 dividend in one year. The equity cost of
7) "Company A has a current stock price of $90 and is expected to pay a $2 dividend in one year. The equity cost of capital is 15%. What price would its stock be expected to sell for immediately after it pays the dividend? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer.
8) Company C pays a dividend of $6 per share and is expected to pay this amount indefinitely. The equity cost of capital is 8%. What is the price of the stock? Note: Express your answers in strictly numerical terms. For example, if the answer is $500, enter 500 as an answer."
please help struggling on capital equity cost
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