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:

Gallbladder

A tiny organ situated beneath the liver, responsible for storing and concentrating bile, which is a digestive liquid created by the liver.

Bile

Fluid secreted from the liver into the duodenum; consists of bile salts, bile pigments, bicarbonate ions, cholesterol, fats, fat-soluble hormones, and lecithin.

Hepatopancreatic Ampulla

is an anatomical structure where the pancreatic duct and the common bile duct join and empty into the duodenum.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, essential in the breakdown and absorption of fats.