Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $25.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D0?

1.05

Explanation:

Price - 25.00

Required - 11.50%

Growth Rate - 7%

To calculatethe last dividend, we will apply the formula below;

(Price * (Required-Growth Rate)) - Growth Rate

Substituting the values in the formula, we have;

(25*.045) -.07 = 1.055

Hence the last dividend is 1.05