A common stock pays an annual dividend per share of $ 2.10. The risk- free rate is

Question:

A common stock pays an annual dividend per share of $ 2.10. The risk- free rate is 7 percent, and the risk premium for this stock is 4 percent. If the annual dividend is expected to remain at $ 2.10, what is the value of the stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...