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NoGrowth Industries Presently Pays an Annual Dividend of $1

Question 56

Multiple Choice

NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely.If NoGrowth's equity cost of capital is 12%,then the value of a share of NoGrowth's stock is closest to:


A) $10.00
B) $15.00
C) $14.00
D) $12.50

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