单选题
An investor evaluating a company's common stock for investment has gathered the following data.
| Earnings per share (2012) | $2.50 |
| Dividend payout ratio (2012) | 60% |
| Dividend growth rate expected during Years 2013 and 2014 | 25% |
| Dividend growth rate expected after Year 2014 | 5% |
| Investors' required rate of return | 12% |
Using the two-stage dividend discount model, the value per share of this common stock in 2012 is closest to:
【正确答案】
B
【答案解析】
B is correct. Dividend per share (2012) = $2.50 (0.6) = $1.50.
