Problem:
The next dividend (Div1) is $1.80, the growth rate (g) is 6%, and the required rate of return (r) is 12%.
Required:
Question: What is the stock price, according to the constant growth dividend model?
A) $15.00
B) $31.80
C) $30.80
D) $30.00
Note: Please show how to work it out.