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Consider the current share price of NIKS Inc., which is $50.36. The company will pay a dividend of $2.20 in one year. The cost of
Consider the current share price of NIKS Inc., which is $50.36. The company will pay a dividend of $2.20 in one year. The cost of equity capital of the firm is 12%. What price should you expect NIKS's stock to sell for immediately after it pays the dividend in one year to justify its current market price?
Select one:
$22.89
$69.92
$56.40
$54.203
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