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The firm will not pay a dividend in year 4 its factory which will be closed for 4 month as it must retrofit its
The firm will not pay a dividend in year 4 its factory which will be closed for 4 month as it must retrofit its electric arch furnace. If investor requires a rate of return of 12.5% and Hala Inc's stock selling for $40.00 per share, should the investor buy its stock? a) No because the firm is valued at $40.00 and can be bought for $44.90 b) No because the firm is valued at $64.78 and can be bought for $40.00 c) None of these answers d) Yes because the firm is valued at $44.90 and can be brought for $40.00 e) Yes because the firm is valued at $55.50 and can be bought for $40.00
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