D0 = $2 and you assume there will be no future growth in dividends. If your required rate of return is 8%, the most you would pay is

Name: D0 = $2 and you assume there will be no future growth in dividends. If your required rate of return is 8%, the most you would pay is
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The value of a stock with no growth in dividends is calculated using the formula: Price = D / r, where D is the dividend and r is the required rate of return. Substituting the given values: Price = $2 / 0.08 = $25.

D0 = $2 and You Assume There Will Be No