Business, 12.03.2020 00:04 victoriapellam04
National Trucking has paid an annual dividend of $1 per share on its common stock for the past 15 years and is expected to continue paying a dollar a share long into the future. Given this, one share of the firm's stock is .a. Basically worthless as it offers no growth potential.
b. Equal in value to the present value of $1 paid one year from today.
c. Priced the same as a $1 perpetuity.
d. Valued at an assumed growth rate of 1 percent.
e. Worth $1 a share in the current market.
Answers: 2
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National Trucking has paid an annual dividend of $1 per share on its common stock for the past 15 ye...
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