Use the Following Information to Answer the Question(s)below

question 30

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental pays no dividends,but spent $4 billion on share repurchases last year.Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year.Taggart currently has 2 billion shares outstanding.
-Taggart's stock price is closest to:

• A)$12.50.
• B)$15.40.
• C)$20.00.
• D)$25.00.

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Definitions:

Implicit Attitude Theory

A concept that suggests attitudes or feelings that individuals may be unaware of or unable to articulate, significantly influence their responses and behaviors.

Self-knowledge

One's understanding and awareness of their own personality, feelings, motives, and desires.

Introspection Theory

A psychological theory which suggests that the examination of one's own conscious thoughts and feelings can provide insight into one's behaviors and mental states.

Self-fulfilling Prophecy

A self-fulfilling prophecy is a prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.