Share dividend to its common stockholders

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Reference no: EM131049631

Ms. Manners Catering (MMC) has paid a constant rate of $3.14 per share dividend to its common stockholders for the past 9 years. MMC expects to continue this policy for the next two years, and then begin to increase the dividend at a constant rate equal to 0.59 percent per year in perpetuity. Investors require a 14.36 percent rate of return to purchase MMC's common stock. What is the market value of MMC's common stock?

Reference no: EM131049631

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