I need to know a perpetuity formula.andelay Industries, a latex company, just paid $4.50per share in annual dividends(i.e. D0= $4.50) andhas historically grown that amount by 5% a year. What is the current value of the stock to an investor who requires an11.4% return under each of the following scenarios?a)Dividends continue to grow at the historical rate(i.e. 5%)b)The dividend growth rate is expected to permanently increase to 7%c)The dividend growth rate is expected to permanently decrease to 3%
