CDB stock is currently priced at $87. The company will pay a dividend of $5.77 next year and investors require a return of 11.5 percent on similar stocks. What is the dividend growth rate on this stock

B. Jan 1

Explanation:

Total Cost of the Present=$105

Down Payment=20%

20% of 105=0.2 X 105=$21

Total Balance to be Paid =105-21=$84

Since she can afford to make a payment of $16 at the beginning of every month, we divide the balance to be paid by 16.

84÷16=5.25

That means Lois must make her first monthly payment 6 Months earlier including June since Father's day is 3rd Week of June.

Her First Monthly Payment should be made Jan 1.