WHAT IS THE VALUE OF THE EXPECTED DIVIDEND PER SHARE FOR A STOCK T...

18. 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 E) $9.60 Solution A D1 = P0 (r – g) D1 = 45 (0.16 – 0.10) = $2.70