NoGrowth Corporation currently pays a dividend of $0.52 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 13.4%?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 7P
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NoGrowth Corporation currently pays a dividend
of $0.52 per quarter, and it will continue to pay
this dividend forever. What is the price per share
of NoGrowth stock if the firm's equity cost of
capital is 13.4%?
Transcribed Image Text:NoGrowth Corporation currently pays a dividend of $0.52 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 13.4%?
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