The Reading Co

question 40

Multiple Choice

The Reading Co.has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annually.The last dividend it paid (T = 0) was $.90 a share.What will be the company's dividend six years from now?

• A)$.90
• B)$.93
• C)$1.04
• D)$1.07
• E)$1.11

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