A stock is expected to pay $2.60 per share every year indefinitely and the equity cost of

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A stock is expected to pay $2.60 per share every year indefinitely and the equity cost of capital for the company is 10%. What price would an investor be expected to pay per share next year?

A $13.00

B. $19.50

C $6.50

D. $26.00

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: May 10, 2022 03:33 AM

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A stock is expected to pay $2.60 per share every year indefinitely and the equity cost of

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Fundamentals of Financial Management

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