Zero Growth If dividends are expected at regular intervals forever,then this is a perpetuity and the present value of expected future dividends can be found using the perpetuity formula Po=D/K D Suppose stock is expected to pay a $0.50 dividend every quarter and the required return is 10%with quarterly compounding. What is the price? >P0=.50/(.1/4)=$20 8-19Zero Growth  If dividends are expected at regular intervals forever, then this is a perpetuity and the present value of expected future dividends can be found using the perpetuity formula  P0 = D / K  Suppose stock is expected to pay a $0.50 dividend every quarter and the required return is 10% with quarterly compounding. What is the price?  P0 = .50 / (.1 / 4) = $20 8-19