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What is the value of the firm stock

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If an all-equity firm is expected to earn and pay out a $4.00 dividend forever (in perpetuity), what is the value of the firm's stock given a cost of equity of 9.60 percent?

  • $22.09
  • $41.67
  • $44.67
  • $44.17

Reference no: EM131992492

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