Common stock valuation Perry Motors common stock just paid an annual dividend of $ 1.80 per share. The required return on common shares is 12%. Calculate the value of common stock by considering each of the following assumptions about the dividend: to. Dividends are expected to grow at an annual rate of 0% indefinitely. The share value = Dividends next year / (% required return - annual growth rate) b. Dividends are expected to grow at a constant 5% annual rate indefinitely. The share value = Dividends next year / (% required return - annual growth rate)