NoGrowth Industries Presently Pays an Annual Dividend of $1

question 32

Multiple Choice

NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely.If NoGrowth's equity cost of capital is 12%,then the value of a share of NoGrowth's stock is closest to:

• A)$10.00
• B)$15.00
• C)$14.00
• D)$12.50
• E)$13.00

---

Definitions:

Embezzlement

The act of withholding assets for the purpose of theft by someone who has been entrusted with those assets, often involving money or property.

Corporate Executives

Senior officers within a corporation, such as CEOs or CFOs, who are responsible for managing the organization and making strategic decisions.

Business Crime

Illegal acts, such as fraud, bribery, insider trading, and embezzlement, committed by individuals or corporations to achieve a financial or professional advantage.

Personal Liability

Legal responsibility of an individual to fulfill debts or obligations from his or her own assets.