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4 November, 08:39

Matilda Industries pays a dividend of $2.25 per share and is expected to pay this amount indefinitely. If Matilda's equity cost of capital is 12%, which of the following would be expected to be closest to Matilda's stock price?

A) $21.98

B) $12.25

C) $14.65

D) $18.75

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Answers (1)
  1. 4 November, 10:48
    0
    D because you are going to divide 2.25/12% and you get 18.75
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