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