Question
If a company pays 100% of its profits in dividends and is expected to pay a $0.70 per quarter dividend in perpetuity, what is the
If a company pays 100% of its profits in dividends and is expected to pay a $0.70 per quarter dividend in perpetuity, what is the value of the company's stock if the cost of capital is 8%?
$140.00
$2.80
$35.00
$11.43
$8.75
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
2nd Edition
0131471988, 978-0131471986
