Goode Inc'S Stock Has a Required Rate of Return of 11

question 46

Multiple Choice

Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0?

• A) $0.95
• B) $1.05
• C) $1.16
• D) $1.27
• E) $1.40