Zephyr Electricals Is a Company with No Growth Potential

question 44

Multiple Choice

Zephyr Electricals is a company with no growth potential. Its last dividend payment was $4.50, and it expects no change in future dividends. What is the current price of the company's stock given a discount rate of 9 percent?

• A) $40.50
• B) $50.00
• C) $45.00
• D) $500.00