A Stock Is Expected to Pay $3

question 84

Multiple Choice

A stock is expected to pay $3.20 per share every year indefinitely and the equity cost of capital for the company is 10%.What price would an investor be expected to pay per share next year?

• A)$8.00
• B)$16.00
• C)$24.00
• D)$32.00
• E)$35.20

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Definitions:

Apologize

The act of expressing regret or sorrow for having done something wrong or caused inconvenience to others.

Negative Information

Data or facts that reflect poorly on a subject, often highlighting problems or issues.

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Digital platforms that enable users to create and share content or participate in social networking.

Stakeholders

Individuals or groups that have an interest in any decision or activity of an organization, including employees, customers, investors, and suppliers.