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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Question
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?$12.50
$16.66
$20.83
$26.04
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