Question
A share of common stock has an expected longrun constant growth rate of 10 percent and is currently priced at$66 per share. If investors require15%
A share of common stock has an expected longrun constant growth rate of 10 percent and is currently priced at$66 per share. If investors require15% rate ofreturn, what was the last dividend paid on thestock?
A.
$6.15
B.
$3.00
C.
$3.30
D.
$1.95
E.
$2.20
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Get StartedRecommended Textbook for
Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
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