Question: 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

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

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