Save Answer Question 9 5 points Company A paid a $3.50 dividend last year. The firm plans to pay out 25% of its earnings and invest the rest of its earnings in new projects caring a 8% return forever, what is the value of the common stock if the investors require a 16 percent rate of return? D. (1+) D. Value of a common stock: V = Dividend Growth Rate = (1 - ROE P Value of common stock - E, D Value of Preferred Stock = Bond value: BV = PMT Face value (1+0) A. $35.50 B. $37.10 C. $25.23 D. $32.45 Quest 20