Lamey Headstones increases its annual dividend by 1.5 percent annually.The stock sells for $28.40 a share at a required return of 14 percent.What is the amount of the last dividend this company paid?

Name: Lamey Headstones increases its annual dividend by 1.5 percent annually.The stock sells for $28.40 a share at a required return of 14 percent.What is the amount of the last dividend this company paid?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

$28.40 = (D₀ × 1.015)/(0.14 - 0.015); D₀ = $3.50

Lamey Headstones Increases Its Annual Dividend by 1