NoGrowth Corporation currently pays a dividend of $0.41 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 12.7%? The stock price is $ (Round to the nearest cent.)
NoGrowth Corporation currently pays a dividend of $0.41 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 12.7%? The stock price is $ (Round to the nearest cent.)
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 17P
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