A stock pays a constant annual dividend and sells for $56.10 a share.If the market rate of return on this stock is 12.5 percent,what is the amount of the next annual dividend?
A)$5.67
B)$5.94
C)$6.21
D)$6.84
E)$7.30

Name: A stock pays a constant annual dividend and sells for $56.10 a share.If the market rate of return on this stock is 12.5 percent,what is the amount of the next annual dividend? A)$5.67 B)$5.94 C)$6.21 D)$6.84 E)$7.30
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Question

Quizplus · Accepted Answer

D₀ = 0.122 × $56.10 = $6.84

A Stock Pays a Constant Annual Dividend and Sells for $56.10