Keeping Pace Enterprises, Makers of Track and Field Equipment, Has

Multiple Choice

Keeping Pace Enterprises, makers of track and field equipment, has common stock that sells for $29, and its dividends are expected to grow at a rate of 9 percent annually. If investors in Pace require a return of 14%, what is the expected dividend next year?

A) $1.33
B) $2.40
C) $1.45
D) $1.60