A Stock Sells for $12

question 97

Multiple Choice

A stock sells for $12.36 a share and has a required return of 9 percent.Dividends are paid annually and increase at a constant 3 percent per year.What is the amount of the last dividend paid?

• A) $0.46
• B) $0.50
• C) $0.59
• D) $0.63
• E) $0.72