Dividend paid
Not what you're looking for?
A share of common stock has an expected long-run constant growth rate of 10 percent and is currently priced at $66 per share. If investors require a 15 percent rate of return, then what was the last dividend paid on the stock?
Po = Dn (1 +Gc)
__________
Ke - Gc
$66 = D1 (1 + .10)
_____________
15% - 10%
$66 = D1 (1 + .10)
_____
$5
$3.30 = D1 (1.10)
$3.00 = Do = last dividend paid was $3.00 answer ?????
_____________________________________________________________________
Purchase this Solution
Solution Summary
Solution shows computation of the last dividend paid on the stock.
Solution Preview
Hello
Please see below
Posting
What was the last dividend paid on the stock
A share of common stock has an expected long-run constant growth rate of 10 percent and is currently priced at $66 per share. If investors require a 15 percent rate of return, then what was the last dividend paid on the stock?
Po = Dn (1 ...
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Motivation
This tests some key elements of major motivation theories.
Operations Management
This quiz tests a student's knowledge about Operations Management
Basics of corporate finance
These questions will test you on your knowledge of finance.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.