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What is a ballpark estimate of the value of this common stoc

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Reference no: EM131132518

F Corporation has a policy to grow the company's cash flows and consequently the dividend by 4 percent each year. In addition F Corp is in an industry where risk is relatively low. Because of this low risk, a 9 percent return is reasonable as a required return. Assuming that F Corp will live up to these projection forever and expects to pay a $1.54 dividend per share at the end of the coming year, what is a ballpark estimate of the value of this common stock? 

Reference no: EM131132518

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