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Matilda Industries Pays a Dividend of $2

Question 22

Multiple Choice

Matilda Industries pays a dividend of $2.10 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be closest to Matilda's stock price?


A) $14.00
B) $18.66
C) $23.33
D) $29.16

Correct Answer:

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