$ Quantitative Problem 1. Hubbard Industries just paid a common dividend, D., of $170. t expects to grow at a constant rate of 34 per year. If investors require a 9 return on equity, what is the current price of Hubbard's common stock? Do not round intermediate calculations, Round your answer to the nearest cent. per share Zero Growth Stocks The constant growth model is sufficiently general to handle the case of a zero growth stack, where the dividend is expected to remain constant over time. In this situation, the equation is: P.-. Note that this is the same equation developed in Chapter 5 to value a perpetuity, and it is the same equation used to value a perpetual preferred stock that entities its owners to regular fixed dividend payments in perpetuity. The valuation equation is simply the current dividend divided by the required rate of return