1. What is the intrinsic value of a common stock that last paid a quarterly dividend of...

Question:

1. What is the intrinsic value of a common stock that last paid a quarterly dividend of $0.30 if there is no expected growth in dividends and your required rate of return is 10%?

2. What if dividends are expected to grow at a rate of 6% per year indefinitely?

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...