Public corporations have no fixed lifespan; as such, they are often viewed as entities that will pay

Question:

Public corporations have no fixed lifespan; as such, they are often viewed as entities that will pay dividends to their shareholders in perpetuity. Suppose a firm pays a of $2 per share every year. If the is 12 percent, what is the present value of all the future dividends?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...