The Common Stock of Energy Saver Pays an Annual Dividend

Multiple Choice

The common stock of Energy Saver pays an annual dividend that is expected to increase by 4 percent annually.The stock commands a market rate of return of 12 percent and sells for $58.25 a share.What is the expected amount of the next dividend to be paid?

A) $4.87
B) $5.02
C) $5.10
D) $4.66
E) $4.33