Answer:
A) $63.00
Explanation:
To find the current price of Buckeye Corporation's stock we can use the growth perpetuity formula:
current price of stock = current dividend / (required rate of return - dividend growth rate)
current price of stock = $3.15 / (13% - 8%) = $3.15 / 5% = $63
Answer:
B - True
Explanation:
No matter how much a company sells or does not sell, it has to pay fixed costs. Variable costs change depending on a company's performance.
The answer is a defense attorney.