Solved: Determine the price of the common stock, Accounting Basics

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Determine the price of the common stock

Problem:

Static Electric Co. currently pays a $2.10 annual cash dividend. It plans to maintain the dividend at this level for the foreseeable future as no future growth is anticipated.

If the required rate of return by common stockholders is 12 percent, what is the price of the common stock?

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Accounting Basics: Determine the price of the common stock

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