What was the most recent dividends per share?

Mathematics
Tutor: None Selected Time limit: 1 Day

Jackson Street Repair's stock currently sells for $55 per share. The market requires a 12% return on the firm's stock. If the company maintains a constant 5% growth rate in dividends. What was the most recent dividends per share paid on the stock(hint: you are looking for DO)?

Nov 18th, 2015

Thank you for the opportunity to help you with your question!

55 = D0*(1+5%)/(12%-5%)

D0= $3.67


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Nov 18th, 2015

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