Price per share of nogrowth stock


Problem:

NoGrowth Corportation currently pays a dividend of $0.50 per quarter, and it will continue to pay this dividend forever.

Required:

Question: What is the price per share of NoGrowth stock if the firms equity cost of capital is 15%?

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics: Price per share of nogrowth stock
Reference No:- TGS0889284

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