If A Company Pays 100 Of Its Profits In Dividends And Is Expected To Pay A 0 70

If a company pays 100% of its profits in dividends and is expected to pay a $0.70 per quarter dividend in perpetuity, what is the value of the company’s stock if the cost of capital is 8%?

  $140.00 

  $2.80

  $35.00 

  $11.43 

  $8.75 

 

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