Calculate the current price per share for the stock


Question: Company X is a no growth firm. It is expected to provide a constant earnings per share of $30. If all earnings are paid out as dividends and the required rate of return on equity is 15%, calculate the current price per share for the stock.

a) $45

b) $100

c) $150

d) $200

e) Not enough information to answer the question

f) There is enough information provided but none of the answers above is correct.

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Accounting Basics: Calculate the current price per share for the stock
Reference No:- TGS01928898

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