What Is the Price of a Share That Recently Paid

question 22

Multiple Choice

What is the price of a share that recently paid a dividend of $0.25,assuming that the dividend is expected to remain unchanged in the future and that the appropriate cost of equity is 12.5% p.a.?

• A)$0.50
• B)$2.00
• C)$1.50
• D)$1.00
• E)Insufficient information to determine its price