Microsoft Inc

question 79

Multiple Choice

Microsoft Inc.'s dividends are expected to grow at a rate of 1% per year in perpetuity.If the appropriate rate of return on such investments is 11% and the price of a Microsoft share is $20.20,then what is the consensus market estimate of the next dividend? (Assume that next dividend will be paid in one year.)

• A) $2.02
• B) $2.22
• C) $2.12
• D) $2.17
• E) $2.24