Question
Garret Freight has paid$1 per share on its common stock each quarter for the past 15 years. The company is expected to maintain this dividend
Garret Freight has paid$1 per share on its common stock each quarter for the past 15 years. The company is expected to maintain this dividend constant. Given this, one share of the firm's stock is:
A) Garret Freight has paid$1 per share on its common stock each quarter for the past 15 years. The company is expected to maintain this dividend constant. Given this, one share of the firm's stock is:
B) Worth $1 a share in the current market.
C) Priced the same as a $1 perpetuity.
D) Valued at an assumed growth rate of 1 percent.
E) Equal in value to the present value of $1 paid one year from today.
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