Candescent Gold, Inc., will pay a quarterly dividend per share of $.58 at the end of each

Question:

Candescent Gold, Inc., will pay a quarterly dividend per share of $.58 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.1 percent forever. The appropriate rate of return on the stock is 10 percent, compounded quarterly. What is the current stock price?

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...