prk. Stacker Weight Loss currently pays an annual year-end dividend of $1.60 per share. It plans to increase this dividend by 3.0% next year and maintain it at the new level for the foreseeable future. If the required return on this firm's stock is 14%, what is the value of Stacker's stock? The value of Stacker's stock is $ (Round to the nearest cent) 2 of 8 (8 complete) ar to) annual year-end dividend of $130 per share it plans to increase this dividend by 3.5% ne red return on this firm's stock is 12%, what is the value of Stacker's stock? 3 (Round to the nearest cent) X Try again. The value of a stock is equal to the present value of future cash flows (ie. dividends) that the stock is expected to provide. If future dividends will remain at a constant level, the dividend stream represents a perpetuity and its present value is: D Po where Po is the value of the stock, D, is the amount of the annual dividend, and is is the required return on the stock OK box and then click Check Answer Clear All