Trust Bankers just paid an annual dividend of $1.75 per share. The expected dividend growth rate is

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Trust Bankers just paid an annual dividend of $1.75 per share. The expected dividend growth rate is 5 percent, the discount rate is 10 percent, and the dividends will last for 5 more years. What is the value of the stock? What if the dividends last for 10 more years? 30 years? 100 years?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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...
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