FINC 600 Week 2 Practice Quiz APU | Page 21

Q u e s t i o n 5 o f 1 5
1. 0 / 1. 0 P o i n t s
Universal Air is a no growth firm and has two million shares outstanding. It is expected to earn a constant 20 million per year on its assets. If all earnings are paid out as dividends and the cost of capital is 10 %, calculate the current price per share for the stock.