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Memphic Memphic
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6 years ago
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
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
B
Explanation:  B) P = $2.50(1.06)/(.13 - .06) = 37.86
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