question archive An all equity firm has two million shares outstanding
An all equity firm has two million shares outstanding
Subject:BusinessPrice: Bought3
An all equity firm has two million shares outstanding. It is expected to earn a constant $20 million per year on its assets and will pay out all future earnings as dividends. If the cost of equity capital is 10%, what is the price of one firm's stock? Select one O a $200 O b. $150 Oc$50 Od $100
