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    Stock valuation

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    (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?

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    At stock with no growth prospects is a perpetuity since the ...

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