Final answer:
Without the exact growth rate of the dividends from 2000 to 2012, the value of the Waller Company stock at the beginning of the 2013 cannot be accurately calculated using the Dividend Discount Model. Thus, the correct answer is (a) Insufficient information.
Step-by-step explanation:
The value of a stock at the beginning of 2013 when the required return is 15.0 percent, given that Waller Company paid a dividend of $0.150 in 2000 which grew to $0.324 in 2012, can be found using the Gordon Growth Model (also known as the Dividend Discount Model). This model suggests that the price of a stock is the present value of all future dividends expected to be generated by the stock, discounted back to their value today. The expected dividend for 2013 (D1) can be calculated using the growth rate obtained from the growth of dividends from 2000 to 2012. Once the dividend for 2013 is calculated, we can use the constant growth formula:
P = D1 / (r - g)
Where P is the price of the stock, D1 is the expected dividend next year, r is the required return (15.0% in this case), and g is the growth rate. To find the growth rate (g), we can use the formula:
g = (D_2012 / D_2000)^(1/12) - 1
However, from the information provided, the exact value of the stock cannot be calculated as the precise growth rate (g) is not specified. We can infer that the value must be close to the dividend of 2013 after being discounted but without the accurate growth rate, the answer remains insufficient. Hence, the correct answer is (a) Insufficient information.