Question

NoGrowth Industries presently pays an annual dividend of $1.80per share and it is expected that these...

NoGrowth Industries presently pays an annual dividend of $1.80per share and it is expected that these dividend payments will continue indefinitely. If​ NoGrowth's equity cost of capital is9​%,then the value of a share of​ NoGrowth's stock is closest​ to:

A. $24

B. $22

C. $20

D. $16

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Answer #1

the value of a share of​ NoGrowth's stock is closest​ to = 1.80/0.09

the value of a share of​ NoGrowth's stock is closest​ to = 20

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