What is the dividend per share in year two

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Reference no: EM131551513

Stock A pays a dividend of $3 per share in year zero. In year 1, the dividend is $3.3 per share,. The dividend growth rate is constant and the return on equity is 25%.

1. What is earnings per share in year 0 ?

A) $6

B) $5

C) $4

D) $ 3

E) None of the above

2. What is earnings per share in year 1 ?

A) $6.0

B) $5.5

C) $4.5

D) $ 5.0

E) None of the above

3. What is earnings per share in year 2 ?

A) $6.05

B) $5.65

C) $4.75

D) $ 3.85

E) None of the above

4. What is the dividend per share in year 2 ?

A) $3.55

B) $3.63

C) $3.30

D) $3.75

E)None

Reference no: EM131551513

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