asked 29.3k views
3 votes
Owen Inc. has a current stock price of $15.00 and is expected to pay a $0.80 dividend in one year. If Owen's equity cost of capital is 12%, what price would its stock be expected to sell for immediately after it pays the dividend?

A) $11.20
B) $12.80
C) $16.80
D) $16.00

1 Answer

3 votes
The answer is D) $16.00
answered
User Mozboz
by
8.2k points
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