Clarion Corp. has been selling electrical supplies for the past 20 years. The company's product line has

Question:

Clarion Corp. has been selling electrical supplies for the past 20 years. The company's product line has changed very little in the past five years, and the company's management does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of $4.45 to its common stockholders. The company is not expected to increase its dividends for the next several years. If your required rate of return for such firms is 13 percent, what is the current value of this company's stock?

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...