Zero growth: Zephyr Electricals is a company with no growth potential. Its last dividend was $4.50, and it expects no change in future dividends. What is the current price of the company's share given a discount rate of 9 percent?
A) $40.50
B) $50.00
C) $45.00
D) $4.91

Question

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The Answer of Zero growth: Zephyr Electricals is a company with no growth potential. Its last dividend was $4.50, and it expects no change in future dividends. What is the current price of the company's share given a discount rate of 9 percent?
A) $40.50
B) $50.00
C) $45.00
D) $4.91

Zero Growth: Zephyr Electricals Is a Company with No Growth