Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The companys management does not expect

Question:

Zero growth: Nynet, Inc., paid a dividend of $4.18 last year. The company’s management does not expect to increase its dividend in the forseeable future. If the required rate of return is 18.5 percent, what is the current value of the stock?

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...