To calculate the most recent dividend per share paid on the stock, you can use the Gordon Growth Model (also known as the Dividend Discount Model or DDM). The formula for the Gordon Growth Model is:
\[D0 = \frac{D1}{r - g}\]
Where:
- \(D0\) is the most recent dividend per share.
- \(D1\) is the expected dividend per share in the next period.
- \(r\) is the required rate of return (9.2 percent or 0.092 as a decimal).
- \(g\) is the growth rate in dividends (2.6 percent or 0.026 as a decimal).
Now, plug in the values:
\[D0 = \frac{D1}{0.092 - 0.026}\]
\[D0 = \frac{D1}{0.066}\]
To find \(D0\), you need to know \(D1\), which represents the dividend expected in the next period. Since the question asks for the most recent dividend, you'll need additional information or assumptions to find \(D1\).
If you have information about the expected dividend for the next period (usually referred to as the forward dividend or next year's dividend), you can use that value to calculate \(D0\). However, if you don't have that information, you won't be able to determine \(D0\) with the given data.