Valuation and Capital Budgeting - Finding the Dividend

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Corporate Finance, 9/e

Stephen A. Ross, Massachussetts Institute of Technology

Randolph W. Westerfield, University of Southern California

Jeffrey F. Jaffe, University of Pennsylvania

ISBN 978-0073105901

Valuation and Capital Budgeting

17. Finding the Dividend Mau Corporation stock currently sells for $49.80 per share. The market requires an 11 percent return on the firm’s stock. If the company maintains a constant 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?