Matilda Industries pays a dividend of $2.45 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be expecte to be closest to Matilda's stock price? O A. $27.22 O B. $21.78 C. $34.03

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
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ng: 00:50:28 Submit Test
This Question: 1 pt
25 of 30 (18 complete)
is Test: 30 pts p.
Matilda Industries pays a dividend of $2.45 per share and is expected to pay this amount
indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be expected
to be closest to Matilda's stock price?
A. $27.22
B. $21.78
O C. $34.03
O D. $16.33
Click to select your answer.
000
Transcribed Image Text:13 ng: 00:50:28 Submit Test This Question: 1 pt 25 of 30 (18 complete) is Test: 30 pts p. Matilda Industries pays a dividend of $2.45 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be expected to be closest to Matilda's stock price? A. $27.22 B. $21.78 O C. $34.03 O D. $16.33 Click to select your answer. 000
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