is expected that these dividend payments will continue indefinitely. ABC's equity cost of capital is 12%, then the value of a share of ABC's stock is closest to: $12.50 $14.50 $18.50
is expected that these dividend payments will continue indefinitely. ABC's equity cost of capital is 12%, then the value of a share of ABC's stock is closest to: $12.50 $14.50 $18.50
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![ABC Corp has just paid its annual dividend of $1.50 per share, and it is expected that these dividend payments will continue indefinitely.
If ABC's equity cost of capital is 12%, then the value of a share of ABC's stock is closest to:
O $12.50
O $14.50
O $18.50
O $16.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31d6cf43-88ea-4f40-92c3-e64c1446db63%2Fbf66633f-f5d2-4b14-8b6f-f1f592fce68d%2Frjjhvww_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Corp has just paid its annual dividend of $1.50 per share, and it is expected that these dividend payments will continue indefinitely.
If ABC's equity cost of capital is 12%, then the value of a share of ABC's stock is closest to:
O $12.50
O $14.50
O $18.50
O $16.50
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