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.

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