Biology Forums - Study Force

Other Fields Homework Help Finance Topic started by: Memphic on Nov 19, 2017



Title: If Nielson's equity cost of capital is 13%, then Nielson's expected share price is closest to:
Post by: Memphic on Nov 19, 2017
If Nielson's equity cost of capital is 13%, then Nielson's expected share price is closest to:
A) $19.23
B) $37.86
C) $35.71
D) $50.00


Title: Re: If Nielson's equity cost of capital is 13%, then Nielson's expected share price is closest ...
Post by: deusmaroto on Nov 19, 2017
B
Explanation:  B) P = $2.50(1.06)/(.13 - .06) = 37.86