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

---

Definitions:

Limited Partnerships

A business formation where one or more general partners manage the business and are personally liable, while limited partners invest but have limited liability and do not manage business operations.

Limited Partnership

A partnership structure where at least one partner has unlimited liability (general partner) and the rest have limited liability (limited partners), protecting them from debts beyond their investment.

Certificate of Limited Partnership

A legal document filed with a state by the general partners of a limited partnership that details the partnership's structure and operations.

Secretary of State

A high-ranking government official responsible for foreign affairs in the United States, or state government affairs in some U.S. states.