Nogrowth Corporation currently pays a dividend of $0.43 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 11.48%? The stock price is $____ (Round to the nearest cent.)

Nogrowth Corporation currently pays a dividend of $0.43 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 11.48%? The stock price is $____ (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

Chapter18: Initial Public Offerings, Investment Banking, And Capital Formation

Section: Chapter Questions

Problem 9MC

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The stock price is $____ (Round to the nearest cent.)

NoGrowth Corporation currently pays a dividend of $0.43 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 11.48%?
The stock price is $
(Round to the nearest cent.)

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