What is the formula for "Common stock valuation with infinite stream of dividends" ?

@Espiritus_Corvus Thanks for the very helpful comment. Actually this exists, it’s not exactly infinite it is just the process of valuing a stock that you have no expected day you will sell it. So, if a stock pays a yearly dividend then the way you value the stock is to assume you’;; receive that dividend forever.

I just need the formula i can’t find it.

What you want is the present value of an annuity, which is what you are describing as “an infinite stream of dividends.”

Look up the formula,we don’t do homework for people here. Look up “present value of annuity formula”.

@zenvelo PVAN is a different formula, which I do have. Not looking for HW to be done for me, I am looking for clarification on a formula I can’t seem to find.

@DrewJ So ask yourself this question: How would I value a common stock with an infinite stream of dividends?

What does the security represent? Is there any valuation beyond the stream of dividends?

A regular payment of a defined amount without end is commonly called an annuity. If it had an end date, it would be a bond.

Just because your professor calls it a common stock does not change the valuation method.

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