NoGrowth Corporation currently pays a dividend of $0.49 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 19.8%? The stock price is S (Round to the nearest cent)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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NoGrowth Corporation currently pays a dividend of $0.49 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 19.8%?
The stock price is $ (Round to the nearest cent)
***
Transcribed Image Text:NoGrowth Corporation currently pays a dividend of $0.49 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 19.8%? The stock price is $ (Round to the nearest cent) ***
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