A Share of Common Stock Has an Expected Long-Run Constant

question 8

Multiple Choice

A share of common stock has an expected long-run constant growth rate of 10 percent and is currently priced at $66 per share.If investors require 15% rate of return,what was the last dividend paid on the stock?

• A) $2.20
• B) $1.95
• C) $6.15
• D) $3.00
• E) $3.30