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:

Conditional Positive Regard

A concept suggesting that acceptance and love from others are contingent upon one's behavior meeting certain conditions or standards.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, considered a drive or need present in everyone.

Predetermined

Something established or decided in advance, not subject to change or influence by subsequent events.

Actualization Tendency

The innate drive in humans towards growth, fulfillment of potential, and self-realization, often associated with the humanistic psychology of Carl Rogers.