Question
A stock is expected to pay $1.20 per share every year indefinitely and the equity cost of capital for the company is 7.2%. What price
A stock is expected to pay $1.20 per share every year indefinitely and the equity cost of capital for the company is 7.2%. What price would an investor be expected to pay per share ten years in the future?
A.$33.34
B.$25.01
C.$16.67
D.$41.68
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
