The Red Bud Co. pays a constant dividend of $3.00 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 8.6 percent? 3. Acme Brothers pays a constant annual dividend of $4.50 a share and currently sells for $50.00 a share. What is the rate of return? 4