Multiple Choice
What is the value of the expected dividend per share for a stock that has a required return of 16 percent, a price of $45, and a constant growth rate of 12 percent?
A) $1.80
B) $3.60
C) $4.50
D) $7.20 $45 = DIV./(.16 - .12)
$45 x .04 = DIV.
Correct Answer:
Verified
Correct Answer:
Verified
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