Multiple Choice
Universal Air is a no growth firm and has two million shares outstanding. It is expected to earn a constant 20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10%, calculate the current price per share for the stock.
A) $200
B) $150
C) $100
D) $50
Correct Answer:
Verified
Correct Answer:
Verified
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