Little Town Motors stock currently sells for $55.10 per share. The market required return is 14.2 percent while the company maintains a constant 3 percent growth rate in dividends. What was the most recent annual dividend per share paid on this stock?

• A.

  $5.99

• B.

  $6.14

• C.

  $6.08

• D.

  $5.87

• E.

  $5.96

The common stock of Little Town Motors has yielded 14.2 percent, 11.7 percent, 3.4 percent, -2.8 percent, and 12.7 percent over the past five years, respectively. What is the geometric average return?

• A.

  8.22 percent

• B.

  7.91 percent

• C.

  7.64 percent

• D.

  8.27 percent

• E.

  8.03 percent

Little Town

Motors has a dividend growth rate of 5.6 percent, a market price of $14.46 a share, and a required return of 14 percent. What is the amount of the last dividend this company paid?

• A.

  $1.30

• B.

  $1.05

• C.

  $1.15

• D.

  $1.60

• E.

  $1.55