Last Year, Hansen Delivery Paid an Annual Dividend of $3

question 78

Multiple Choice

Last year, Hansen Delivery paid an annual dividend of $3.20 per share. The company has been reducing the dividends by 10 percent annually. How much are you willing to pay to purchase stock in this company if your required rate of return is 11.5 percent?

• A)$1.92
• B)$7.87
• C)$13.40
• D)$21.16
• E)$24.08