Suppose that you are interested in buying the stock of a company that has a policy of paying a $6 per share dividend every year Assuming no changes in the firm 's policies, what is the value of a share of stock if the required rate of return is 11 percent ...

Suppose that you are interested in buying the stock of a company that has a policy of

Question:

Suppose that you are interested in buying the stock of a company that has a policy of paying a $6 per share every year. Assuming no changes in the firm's policies, what is the value of a share of stock if the required rate of return is 11 percent?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...