The common stock of Kyocera currently sells for $88.50 and its last (D₀) dividend was $1.10. Determine the implied constant growth rate for Kyocera assuming it returns 14%.

A) 13.9%
B) 12.3%
C) 13.8%
D) 12.6%

Implied Constant Growth

A concept in financial modeling that assumes a company or economy will continue to grow at a consistent rate indefinitely, impacting valuation methods.

Kyocera

A multinational corporation based in Japan, specializing in ceramic and electronic products.

Last Dividend

The most recent distribution of profits made by a corporation to its shareholders.