54.7k views
2 votes
If a stock pays a constant annual dividend then the stock can be valued using the:

1 Answer

3 votes
If a stock pays a constant annual dividend then the stock can be valued using the present value of an ordinary annuity formula. You can use this formula with the use of the amount of annual dividend being paid by the company on its stock.
User Oleg Abrazhaev
by
6.9k points