Static Utility Company anticipates its revenues,and consequently its common stock dividends,will remain flat forever.It currently pays an annual dividend of $20 per year.If it pays the next dividend exactly one year from today,then what is the price of Static's common shares if the required rate of return is 12%?
A) $24.00
B) $40.00
C) $166.67
D) $200.00
Correct Answer:
Verified
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