Multiple Choice
A stock is expected to pay $1.25 per share every year indefinitely and the equity cost of capital for the company is 7.5%.What price would an investor be expected to pay per share ten years in the future?
A) $16.67
B) $25.01
C) $33.34
D) $41.68
E) $12.50
Correct Answer:
Verified
Correct Answer:
Verified
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