F & D Industry's common stock sells for $43.05 a share and pays an annual dividend that increases by 5% annually. The market rate of return on this stock is 10%. What is the amount of the last dividend paid by F & D?

A) $1.95
B) $2.05
C) $2.15
D) $2.21
E) $2.26

Annual Dividend

The total dividend payment a shareholder receives from a company in a single year.

Market Rate of Return

The average rate of return that investors expect to earn in the financial markets from an investment, reflecting the risk compared to the risk-free rate.

Dividend Increases

Dividend increases refer to the raising of the dividend amount paid out by a company to its shareholders over time.