单选题 An analyst does research about dividend discount model and gathers the following information about a company:
Current dividend per share (D0) $2.80
Dividend growth rate 6.5%
Nominal risk-free rate 3.5%
Required risk premium 6.5%
Expected rate of inflation 1.5%
According to the dividend discount model (DDM), the value of a share is closest to:
A. $59.64
B. $80.00
C. $85.20

【正确答案】 C
【答案解析】[解析] $2.80×(1+6.5%)/(3.5%+6.5%-6.5%)=$85.2。