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National Trucking has paid an annual dividend of $1.00 per share on its common stock for the past fifteen years and is expected to continue
National Trucking has paid an annual dividend of $1.00 per share on its common stock for the past fifteen years and is expected to continue paying a dollar a share long into the future. Given this, one share of the firm's stock is:
A. | basically worthless as it offers no growth potential. | |
B. | equal in value to the present value of $1 paid one year from today. | |
C. | priced the same as a $1 perpetuity. | |
D. | valued at an assumed growth rate of one percent. | |
E. | worth $1 a share in the current market. |
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