which of the following would be expected to be closest to​ Matilda's stock​ price?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...
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Matilda Industries pays a dividend of
$2.50
per share and is expected to pay this amount indefinitely. If​ Matilda's equity cost of capital is
12​%,
which of the following would be expected to be closest to​ Matilda's stock​ price?
 
A.
$12.50
 
B.
$16.66
 
C.
$20.83
 
D.
$26.04
 
 

 

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