Answered

Matilda Industries pays a dividend of $2.25 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) $21.98
B) $12.25
C) $14.65
D) $18.75

Answer :

D because you are going to divide 2.25/12% and you get 18.75

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