Find the current dividend on a stock, given that the required return is 9 percent, the dividend

Question:

Find the current dividend on a stock, given that the required return is 9 percent, the dividend growth rate is 6 percent, and the stock price is $50 per share.

a. $1.42

b. $1.25

c. $1.75

d. $2.00

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...