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 10 percent?
A)$2.70
B)$3.60
C)$4.50
D)$7.20

Question

Quizplus · Accepted Answer

The expected dividend per share is $2.70. This is calculated as follows:Expected dividend per share = Price of stock * Required return * (1 + Constant growth rate)= $45 * 0.16 * (1 + 0.10)= $45 * 0.16 * 1.10= $2.70

What Is the Value of the Expected Dividend Per Share