What Is the Value of the Expected Dividend Per Share

question 121

Multiple Choice

What is the value of the expected dividend per share for a stock that has a required return of 16 percent, a price of $45, and a constant growth rate of 12 percent?

• A)$1.80
• B)$3.60
• C)$4.50
• D)$7.20

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Definitions:

Charles II

The king of England, Scotland, and Ireland from 1660 to 1685, known for his role in the Restoration of the monarchy after the period of Oliver Cromwell's Commonwealth.

Anglo-Dutch War

A series of military conflicts between England (later Great Britain) and the Dutch Republic in the 17th and 18th centuries, largely over trade and maritime dominance.

New Amsterdam

The 17th century Dutch colony that was located at the southern tip of Manhattan Island, which later became New York City upon English acquisition.

New Netherland

A 17th-century colonial province of the Dutch Republic that included parts of present-day New York, New Jersey, Delaware, and Connecticut.