Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / What is the value of a share that has been paying $2 dividends with no growth prospects, and a required rate of return of 10%?

What is the value of a share that has been paying $2 dividends with no growth prospects, and a required rate of return of 10%?

Finance

What is the value of a share that has been paying $2 dividends with no growth prospects, and a required rate of return of 10%?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The value is computed as shown below:

= Dividend / required rate of return

= $ 2 / 0.10

= $ 20