A stock is expected to pay $0.70 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 7.9%,
what price would an investor be expected to pay per share five years into the future?
A) $8.86
B) $14.18
C) $14.62
D) $15.06
Answer: A
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In 20x5, Horwitz Corporation issued ten-year, 9 percent bonds when the market interest rate was 11 percent. Interest is payable annually. During 20x8, the market rate of interest for similar bonds was 12 percent. Using the effective interest method of amortization, what interest rate will be used to calculate interest expense for 20x8?
A) 12 percent B) 9 percent C) 6 percent D) 11 percent
Which of the following is a way in which individuals might approach conflict?
A) Competition B) Collaboration C) Avoidance D) All of the above
What is the trend in public employee pensions and health care benefits?
What will be an ideal response?
The easiest part of ratio analysis is:
A) the interpretation of the ratio. B) analyzing trends or changes in them. C) using the ratio to make decisions. D) the computation of the ratio.