Wislow Brothers common stock sells for $28.20 a share and pays an annual dividend that increases by 1.5 percent annually.The market rate of return on this stock is 11.3 percent.What is the amount of the last dividend paid?

Name: Wislow Brothers common stock sells for $28.20 a share and pays an annual dividend that increases by 1.5 percent annually.The market rate of return on this stock is 11.3 percent.What is the amount of the last dividend paid?
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Quizplus · Accepted Answer

$28.20 = (D₀ × 1.015)/(.113 - .015)D₀ = $2.72

Wislow Brothers Common Stock Sells for $28