Question

1. A company has grown at a constant rate, which equals 5 percent, for as long as it has been in business. This growth rate is expected to continue long into the future. A week ago, the company paid common stockholders a dividend equal to $3.50 per share. If investors require a 12 percent rate of return to purchase this common stock, what is the market value of this common stock

Answer 1

I think the answer is growth rate is expected to continue long into the future. A couple of days ago, Alpine paid common stockholders a dividend equal to $3 per share.

Step-by-step explanation: