caculate the common stock value using a required rate of return equal to 6.5% per year. Assume that the $1.20 dividend is paid semiannually.

Common stock value: Constant growth McCracken Roofing Inc. common stock paid a dividend of $1.20 per share last year. The company expects earnings and divi- dends to grow at a rate of 5% per year for the foreseeable future