Multiple Choice
What would be the maximum an investor should pay for the ordinary equity of a firm that has no growth opportunities but pays a dividend of €1.36 per year? The next dividend will be paid in exactly 1 year.The required rate of return is 12.5%.
A) €9.52
B) €10.88
C) €12.24
D) €17.00
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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