continue indefinitely. If GenElec's equity cost of capital is 11%, then the value of a share of GenElec's stock is closest to Select one: O a. $12.5 O b. $5.45 O c. $54.54 O d. $7.5

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
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GenElec Inc currently pays an annual dividend of $0.60 per share and it is expected that these dividend payments will
continue indefinitely. If GenElec's equity cost of capital is 11%, then the value of a share of GenElec's stock is closest
to
Select one:
O a. $12.5
O b.
$5.45
c. $54.54
O d. $7.5
Transcribed Image Text:GenElec Inc currently pays an annual dividend of $0.60 per share and it is expected that these dividend payments will continue indefinitely. If GenElec's equity cost of capital is 11%, then the value of a share of GenElec's stock is closest to Select one: O a. $12.5 O b. $5.45 c. $54.54 O d. $7.5
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