# Zero Growth Stock Price Calculator

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Instructions:
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Use this calculator to compute the price of a zero growth stock, showing all the steps, by providing the value of the dividend paid (\(D\)), the discount rate per period (\(r\)):

## Stock Value Calculator

More about this
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zero-growth stock value calculator
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so you can better understand how to use this solver: The price of a stock depends on whether it gives dividends or not and whether the dividend value grows or not. Assuming a zero-growth stock, with a dividend of \(D\) and a is discount rate of \(r\), the price of the stock is computed sing the following formula:

### Example: Zero-Growth Stock

**Question**: Find the value of a zero-growth stock which has a dividend of $3.56 per year, per share, and it has a
discount rate of 3.4%.

Solution:

This is the information we have been provided with:

• The dividend pay per period is \(D = 3.56\), and the appropriate discount rate per period is \(r = 0.034\).

Therefore, the price of the corresponding zero-growth stock is :

\[ \begin{array}{ccl} P & = & \displaystyle \sum_{n = 1}^{\infty} {\frac{D}{(1+r)^n}} \\\\ \\\\ & = & \displaystyle \frac{D}{1+r} + \frac{D}{(1+r)^2 } + ... \\\\ \\\\ & = & \displaystyle \frac{D}{r} \\\\ \\\\ & = & \displaystyle \frac{3.56}{0.034} \\\\ \\\\ & = & 104.71 \end{array} \]Therefore, price for the stock price with zero-growth, a dividend of \(D = 3.56\) and a discount rate of \(r = 0.034\) is $\(104.71\).

### Corporate Finance Calculators

You can use also a traditional stock price calculator .