Equity cost of capital for the company that released shares

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Reference no: EM13883401

A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per share five years into the future?

A) $12.50

B) $20.43

C) $21.23

D) $22.65

Reference no: EM13883401

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