What Is the Value of the Expected Dividend Per Share

question 120

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 10 percent?

• A)$2.70
• B)$3.60
• C)$4.50
• D)$7.20 $45 = DIV./(.16 - .10)
• $45 x .06 = DIV.

---

Definitions:

Diversity Competency

The ability to understand, respect, and value the differences among individuals, contributing to an inclusive and effective working environment.

Chubb's Business

Chubb's business focuses on providing insurance products and services to individuals, families, and businesses.

Evidence-Based Management

A managerial approach focusing on making decisions and policies through the conscientious, explicit, and judicious use of the best available evidence.

Deeper Diagnosis

A thorough and detailed analysis or examination to understand underlying causes or complexities of an issue.