The C Alice Stone Companys common stock has paid a $3 dividend for so long that investors are now convinced that the stock will continue to pay that annual dividend forever If the next dividend is due in one year and investors require an 8 return on the stock, what is its current market price What ...

P 3008 3750 is the current price However as soon as the ...

The C. Alice Stone Companys common stock has paid a $3 dividend for so long that investors

Question:

The C. Alice Stone Company’s has paid a $3 for so long that investors are now convinced that the stock will continue to pay that annual forever. If the next is due in one year and investors require an 8% return on the stock, what is its current market price? What will the price be immediately after the next payment?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...