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 12 percent?
A)$1.80
B)$3.60
C)$4.50
D)$7.20 $45 = DIV./(.16 - .12)
$45 x .04 = DIV.

Question

Quizplus · Accepted Answer

The expected dividend per share is $1.80. This is calculated by dividing the required return (16%) by the difference between the required return and the constant growth rate (12%).

What Is the Value of the Expected Dividend Per Share