National trucking has paid an annual dividend of 100 per


National Trucking has paid an annual dividend of $1.00 per share on its common stock for the past fifteen 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 $1 perpetuity.

D. valued at an assumed growth rate of one percent.

 

E. worth $1 a share in the current market.

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Financial Management: National trucking has paid an annual dividend of 100 per
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