What Is the Value of the Expected Dividend Per Share

question 71

Multiple Choice

What is the value of the expected dividend per share for a stock that has a required return of 16%,a price of $45,and a constant-growth rate of 12%?

• A) $1.80
• B) $3.60
• C) $4.50
• D) $7.20

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Definitions:

Lifetime

The duration for which an entity, such as a product, organization, or individual, exists or is expected to function.

Express Warranty

An explicit promise by the seller regarding the quality, condition, or performance of the product being sold.

Bass Clarinet

A musical instrument that is a member of the woodwind family, larger than a regular clarinet and producing a deeper, richer sound.

Conform

To behave or perform in a manner that aligns with set norms, regulations, or legal requirements.