The common stock of Union Jack Flags is currently selling

The common stock of Union Jack Flags is currently selling for $28 per share. The company’s stock has been growing at a constant annual rate of 4 percent, and this growth is expected to continue for an infinite period. The required rate on the stock is 11 percent. If you buy the stock today, what is the next dividend you would receive?

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...