Spacefood products will pay a dividend of $2.40 per share this year. it is expected that this dividend will grow by 3% per year each year in the future. what will be the current value of a single share of spacefood's stock if the firm's equity cost of capital is 10%?

a) $24.00

b) $23.97

c) $30.22

d) $34.29

D) $34.29

Explanation:

Spacefood's stock if the firm's equity cost of capital is 10%, also the discount rate to calculate the present value of Spacefood's stock

The current value of a single share = (dividend per share) / (discount rate - growth rate)

= $2.4/(10%-3%)

=$34.29

d. automatic stabilizers.

explanation:

1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

just took it 100%