What Is the Value of the Expected Dividend Per Share

question 82

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 $45 = DIV./(.16 - .12)
• $45 x .04 = DIV.

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Definitions:

Enzymes

Biological molecules that act as catalysts to speed up chemical reactions in living organisms.

Eukaryotes

Organisms whose cells contain a nucleus enveloped by a membrane, including animals, plants, fungi, and protists.

Gene Control

The regulation of gene expression, a critical process that enables genes to be turned on or off, influencing the development and maintenance of organisms.

Post-Translational

Refers to the changes a protein may undergo after translation, including folding, cutting, and addition of chemical groups, which are crucial for its final function.