Purchase Solution

Stock Valuation of the Mill Due Corporation

Not what you're looking for?

Ask Custom Question

A15. (Stock valuation) Let's say the Mill Due Corporation is expected to pay a dividend of $5.00 per year on its common stock forever into the future. It has no growth prospects whatsoever. If the required return on Mill Due's common stock is 14%, what is a share worth?

Purchase this Solution

Solution Summary

The solution explains how to calculate the value of a share with no growth.

Solution Preview

The worth of a share is the present value (PV) of all dividends. If the dividends ...

Purchase this Solution

Free BrainMass Quizzes
Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.


This tests some key elements of major motivation theories.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.