Corcoran Corp. pays a constant $10.25 dividend on its stock. The company will maintain this dividend for

Question:

Corcoran Corp. pays a constant $10.25 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever. If the required return on this stock is 9.7 percent, what is the current share 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...