Question
Company C pays a dividend of $4.16 per share and is expected to pay this amount indefinitely. The equity cost of capital is 12.67%. What
Company C pays a dividend of $4.16 per share and is expected to pay this amount indefinitely. The equity cost of capital is 12.67%. What should the price of the stock be?
NOTE: Enter the number rounding to two decimals. If your answer is $5.6786, your answer must be 5.68. Also do not use Excel
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Building Financial Models
Authors: John Tjia
2nd Edition
0071608893, 978-0071608893
