Nike's Common Shares Are Currently Trading at $57

question 6

Multiple Choice

Nike's common shares are currently trading at $57.12.Dividends on this stock are paid annually and are expected to grow at 2% per annum in perpetuity.Shareholders required return on this investment of 3%.The most recent dividend was paid yesterday and the next dividend will be paid in one year.How big was yesterday's dividend?

• A) $0.55
• B) $0.56
• C) $0.57
• D) $0.60
• E) $0.62

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Definitions:

Mood Disorders

A group of disorders distinguished primarily by changes in positive and negative affective state.

Suicide

The act of intentionally causing one's own death.

Depressed

A state characterized by feelings of severe despondency and dejection.

Mood Disorders

A group of mental disorders involving persistent disturbances in mood or emotional state, such as depression or bipolar disorder.