Beverly Company’s required rate of return is 15% and the current risk-free rate is 5% assuming a 0% long-term growth rate, what is Beverly's estimated future annual dividend?

Beverly Company’s required rate of return is 15% and the current risk-free rate is 5% assuming a 0% long-term growth rate, what is Beverly’s estimated future annual dividend?

Using the dividend discount model, an analyst determines mat Beverly Company’s equity is worth $80 per share.

Beverly Company’s required rate of return is 15% and the current risk-free rate is 5% assuming a 0% long-term growth rate, what is Beverly’s estimated future annual dividend?
A . $16.00
B. $12.00
C. $8.00
D. $ 1. 20

Answer: C