Use the Following Information to Answer the Question(s)below

question 30

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental pays no dividends,but spent $4 billion on share repurchases last year.Taggart's equity cost of capital is 13% and the amount spent on repurchases is expected to grow by 5% per year.Taggart currently has 2 billion shares outstanding.
-Taggart's stock price is closest to:

• A)$12.50.
• B)$15.40.
• C)$20.00.
• D)$25.00.

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Definitions:

Directional Selection

Directional selection refers to a process in evolutionary biology where an extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time in the direction of that phenotype.

Hawaiian Honeycreepers

A group of small, colorful birds native to Hawaii, known for their diverse beak shapes and sizes, adapted to different feeding habits and ecological niches.

Ecological Niches

The role and position a species occupies in its environment, including all interactions with biotic and abiotic factors.

Monophyletic Group

An ancestor in which a derived trait evolved, together with all of its descendants.