Purchase Solution

Dividend paid

Not what you're looking for?

Ask Custom Question

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.