Matilda Industries Pays a Dividend of $2

question 22

Multiple Choice

Matilda Industries pays a dividend of $2.10 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 9%, which of the following would be closest to Matilda's stock price?

• A) $14.00
• B) $18.66
• C) $23.33
• D) $29.16

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Definitions:

William Wallace

A Scottish knight who became one of the main leaders during the First War of Scottish Independence against England in the late 13th and early 14th centuries.

Scottish Warrior

A term referring to fighters from Scotland, typically associated with historical battles and clan warfare.

Government of The People

A political system in which power is vested in the citizens, typically through elected representatives, embodying the principles of democracy.

Abraham Lincoln

The 16th President of the United States who led the nation during the American Civil War and is known for the Emancipation Proclamation, which aimed to free slaves.