Homework Help: Prin Finance

Posted by Donald on Sunday, March 14, 2010 at 4:34pm.

Your company pays a dividend of $2.35 per share and expects no growth in this dividend at all, it will remain at this level indefinitely in management’s opinion. Theoretically what will this stock’s price be today if investors require an 8% rate of return on all such investments?
a. $27.43
b. $29.38
c. $30.75
d. $32.58

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