Universal air is a no-growth firm and has two million


Universal Air is a no-growth firm and has two million shares outstanding. It expects to earn a constant $20 million per year on its assets. If it has no debt, all earnings are paid out as dividends, and the cost of capital is 10%, calculate the current price per share of the stock.

$200

$150

$100

$50

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Financial Management: Universal air is a no-growth firm and has two million
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