(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?© BrainMass Inc. brainmass.com October 9, 2019, 11:26 pm ad1c9bdddf
At stock with no growth prospects is a perpetuity since the ...
The solution explains how to calculate the value of a stock with no growth