[Solved] A company has an EPS of US$12 per share.

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A company has an EPS of US$12 per share. It pays out its entire earnings as dividend. It has a growth rate of zero and

A company has an EPS of US$12 per share. It pays out its entire earnings as dividend. It has a growth rate of zero and a required return on equity of 8 percent per annum. Assuming all cashflows are perpetuities, what will be the price of the companys stock?

Select one:

a. USD83.43

b. USD155.00

c. USD85.00

d. USD150.00

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