Company BBB has a dividend of 10p per share and pays out 12.5%. all its earnings as a dividend. It has a Required Rate of Return, r = What is its intrinsic share Price based on the No-growth Model, PNG = EPS? r = A. 8p B. 80p C. 125p D. None of these.

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Can you please help with the question in the picture attached? The answer should be only one and I’m quite confused. Thank you!

Company BBB has a dividend of 10p per share and pays out
12.5%.
all its earnings as a dividend. It has a Required Rate of Return, r =
What is its intrinsic share Price based on the No-growth Model, PNG =
EPS?
r
=
A. 8p
B. 80p C. 125p D. None of these.
Transcribed Image Text:Company BBB has a dividend of 10p per share and pays out 12.5%. all its earnings as a dividend. It has a Required Rate of Return, r = What is its intrinsic share Price based on the No-growth Model, PNG = EPS? r = A. 8p B. 80p C. 125p D. None of these.
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