NoGrowth Corporation currently pays a dividend of $0.44 per quarter, and it will continue to pay...

Question

Question

business finance

Answer 1

Answer #1

Answer:

Dividend D=$0.44 per quarter

Cost of capital=13.7% per annum

Per quarter cost of capital r=13.7%/4=3.425%

So price of share=D/r=0.44/3.425%=$12.85 per share

Answer 2

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