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Author Question: A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the ... (Read 107 times)

sam.t96

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A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per share five years into the future?
◦ $12.50
◦ $20.43
◦ $22.65
◦ $21.23


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Marked as best answer by sam.t96 on Jul 9, 2019

brittanywood

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