If the market interest rate is 2%, then a share of stock that pays a constant yearly dividend of $1, which is expected to go on forever, has a present day value of

If the market interest rate is 2%, then a share of stock that pays a constant yearly dividend of $1, which is expected to go on forever, has a present day value of

If the market interest rate is 2%, then a share of stock that pays a constant yearly dividend of $1, which is expected to go on forever, has a present day value of 




A) $0.02
B) $0.98
C) $50.00
D) infinity







Answer: C