Use the Information for the Question(s)below

question 1

Multiple Choice

Use the information for the question(s) below.
The JRN Corporation will pay a constant dividend of $3 per share,per year,in perpetuity.Assume that all investors pay a 20% tax on dividends and that there is no capital gains tax.The cost of capital for investing in JRN stock is 12%.
-The price of a share of JRN's stock is closest to:

• A)$20.00.
• B)$24.00.
• C)$25.00.
• D)$18.00.

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Definitions:

Antagonist

in pharmacology, a substance that acts against and blocks an action. In literature, a character or force in conflict with the main character.

Neurotransmitter

Chemical messengers in the brain and body that transmit signals from one nerve cell to another.

Peripheral Nerves

Nerves located outside the brain and spinal cord, which connect the central nervous system to limbs and organs.

CNS

Central Nervous System; it comprises the brain and spinal cord, acting as the primary processing center for the entire nervous system.