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.