Mason Corp. is a manufacturer of consumer staples and has experienced no growth for the past five

Question:

Mason Corp. is a manufacturer of consumer staples and has experienced no growth for the past five years while paying a dividend of $3.50 every year. The CFO expects the firm to have no growth and for dividends to remain constant for the foreseeable future. If the required rate of return is 10 percent, what should be the price of this stock today?

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...