Question: Stock pricing with constant dividend or dividend with constant growth rate. What is the current per-share value of JRM Corporation to an investor who require a 16% rate of return?
a) JRM' current per-share dividend is $2 and is expected to remain at 2 for the foreseeable future? D0 = ??; r = ??; Price = ??
b) What is the price if the per-share dividend will grow at 2%? D0 = ??; g = ??; r = ??; Price = ??