a common stock pays an annual dividend per share of $4.40. the risk-free rate is 8% and the risk premium for this stock is 3%. if the annual dividend is expected to remain at $4.40, what is the value of the stock?

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The value of the stock after all the required adjustments will be $11.

The ownership certificates of any corporation are referred to as stocks in general. A share, on the other hand, refers to the stock certificate of a specific business.

A person becomes a shareholder if you possess shares in a specific business. There are two sorts of stocks: ordinary and preferred.

A common stock pays an $4.40 annual dividend per share. The risk premium for this stock is 3%, while the risk-free rate is 8%.

4.40 / (0.03+0.08)

After making all the necessary modifications, the stock's value will be $11 if the anticipated annual dividend stays at $4.40.

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