Question
What price would you pay for a stock that had just paid a dividend of $4.75, having earned $6.00 in profit per share, had a
What price would you pay for a stock that had just paid a dividend of $4.75, having earned $6.00 in profit per share, had a 12.45% cost of capital, 32.5m shares on issue and has equity of $2.65bn?
| a. | $44.18 | |
| b. | $47.97 | |
| c. | $39.56 | |
| d. | $25.04 |
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Foundations Of Financial Markets And Institutions
Authors: Frank J. Fabozzi, Franco Modigliani, Michael G. Ferri
2nd Edition
0136860567, 9780136860563
