Multiple Choice
The WTC Corporation will pay a constant dividend of $3.20 per share,per year,in perpetuity.If all investors pay a 15% tax on dividends,there is no capital gains tax,and the cost of capital for investing in WTC stock is 9%,what is the price for a share of WTC stock?
A) $30.22
B) $26.67
C) $18.77
D) $16.45
E) $15.76
Correct Answer:
Verified
Correct Answer:
Verified
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