What price would an investor be expected to pay

Reference no: EM13262661

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 in the future?

Thank you so much for your help! :)

A) 22.65
B) 20.43
C) 21.23
D) 12.50

Reference no: EM13262661

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