Firm is anticipated to have net income per share

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Reference no: EM13910850

Suppose a firm is anticipated to have a Net Income per Share of $25 next year and is expected to pay only 20% of (total) Net Income in Dividends. Also, the firm faces an unusually high cost of common stock of 22% and has an unusually low dividend growth rate of 2%. What should the price per share be for this firm's common stock?

a. $ 0.00

b. $25.00

c. $50.00

d. $75.00

Reference no: EM13910850

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