A Share of Common Stock Has a Current Price of $82.50

question 40

Multiple Choice

A share of common stock has a current price of $82.50 and is expected to grow at a constant rate of 10 percent. If you require a 14 percent rate of return, what is the current dividend (D0) on this stock?

• A)$2.00
• B)$3.00
• C)$4.00
• D)$3.30
• E)$6.00

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