Determine the expected dividend at the end of year 5

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Blossom Natural Foods' current dividend is $11.00. You expect the growth rate to be 0 percent for years 1 to 5, and 2 percent for years 6 to infinity. The required rate of return on this firm's equity is 10 percent.

(a) Determine the expected dividend at the end of year 5. (Enter answer to 2 decimal places, e.g. 11.61.)

Reference no: EM132807207

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