Zimmer's Common Stock Sells for $37 and Its Dividend Is

question 33

Multiple Choice

Zimmer's common stock sells for $37 and its dividend is expected to grow at a rate of 8 percent annually. What is the expected dividend (D₁) if Zimmer is returning 16%?

• A)$2.74
• B)$3.20
• C)$5.92
• D)$2.96

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