Matilda Industries Pays a Dividend of $2

question 41

Multiple Choice

Matilda Industries pays a dividend of $2.25 per share and is expected to pay this amount indefinitely.If Matilda's equity cost of capital is 12%,which of the following would be expected to be closest to Matilda's stock price?

• A)$12.25
• B)$14.65
• C)$18.75
• D)$21.98
• E)$22.35

---

Definitions:

Food

Any nutritious substance that people or animals eat or drink, or that plants absorb, in order to maintain life and growth.

Most People

Generally refers to the majority of individuals in a population or group.

Primary Reinforcer

A stimulus like food or water, that is naturally rewarding and satisfies a biological need, used to reinforce behaviors.

Funny Joke

A humorous or amusing statement or story designed to provoke laughter or amusement.