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 a $1 perpetuity.
D) valued at an assumed growth rate of one percent.
E) worth $1 a share in the current market.
Correct Answer:
Verified
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