Suppose you calculate the value of a stock to be $100 per share. No dividend growth is expected and the firms shareholders require a 10% return on their investment. Your boss challenges your assumption that dividends will pay forever. I expect the corporation will die in 90 years he says. By how much should you revise your share price valuation downward based on your bosss assumption?

Select one:

a. $0.02

b. $10

c. $100

d. Not enough information to solve this problem