Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.45 but

Question:

Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.45 but management expects to reduce the payout by 4.5 percent per year, indefinitely. If you require a return of 11 percent on this stock, what will you pay for a share today?

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...