value 200 points Feeback Corporation stock currently sells f

value: 2.00 points Feeback Corporation stock currently sells for $64 per share The market requires a return of 11 percent on the firm\'s stock If the company maintains a constant 4 5 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Round your answer to 2 decimal places. (e.g., 32.16)) Dividend paid per share Hints References eBook & Resources Hint#1 Check my

Solution

Price of the stock=Next Dividend/(required return-growth rate)
=>64=Next Dividend/(11%-4.5%)
=>Next Dividend=64*(11%-4.5%)=4.16
Last or recent Dividend=Next Dividend/(1+growth rate)=4.16/(1+4.5%)=3.981