Yummy Bakery just paid an annual dividend of $3.40 a share and is expected to increase that amount by 2.2 percent per year. If you are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 14.8 percent at the time of your purchase?
A) $29.89
B) $27.58
C) $29.83
D) $28.18
E) $27.20

Question

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The Answer of Yummy Bakery just paid an annual dividend of $3.40 a share and is expected to increase that amount by 2.2 percent per year. If you are planning to buy 1,000 shares of this stock next year, how much should you expect to pay per share if the market rate of return for this type of security is 14.8 percent at the time of your purchase?
A) $29.89
B) $27.58
C) $29.83
D) $28.18
E) $27.20

Yummy Bakery Just Paid an Annual Dividend of $3