Question

The JRN Corporation will pay a constant dividend of $3 per share,per year, in perpetuity. Assume that all investors pay a 20% tax on dividends and that there is no

capital gains tax. The cost of capital for investing in JRN stock is 12%. The price of a share of JRN's stock is closest to: A. $20.00 B. $24.00 C. $25.00 D. $18.00

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