F Corporation has a policy to grow the companys cash flows and consequently the dividend by 4

Question:

F Corporation has a policy to grow the company’s cash flows and consequently the dividend by 4 percent each year. In addition F Corp is in an industry where risk is relatively low. Because of this low risk, a 9 percent return is reasonable as a required return. Assuming that F Corp will live up to these projection foreverand expects to pay a $1.54 dividend per share at the end of the coming year, what is a ballpark estimate of the value of this common stock?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...