Lets say the Mill Due Corporation is expected to pay a dividend of $5 00 per year on its common stock forever into the future It has no growth prospects whatsoever If the required return on Mill Dues common stock is 14 what is a share worth ...

Lets say the Mill Due Corporation is expected to pay a dividend of $5.00 per year on

Question:

Let’s say the Mill Due is expected to pay a of $5.00 per year on its forever into the future. It has no growth prospects whatsoever. If the required return on Mill Due’s is 14% what is a share worth?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...