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NoGrowth Corporation currently pays a dividend of $.43 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of...

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NoGrowth Corporation currently pays a dividend of $.43 per quarter, and it will continue to pay this dividend forever. What is the price per share of NoGrowth stock if the firm's equity cost of capital is 17.5%?

Answered Same Day Dec 29, 2021

Solution

Robert answered on Dec 29 2021
124 Votes
No Growth Corporation cu
ently pays a dividend of $.43 per quarter, and it will continue to
pay this dividend forever. What is the price per share of No Growth stock if the firm's equity
cost of capital is 17.5%?
Solution:
Yearly dividend = $.43 per quarter x 4 quarters = $1.72 per year...
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