The dividend is hopefuly to make at a constant rate

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Question about Expected year-end dividend

Francis Inc.'s stock has a required rate of return of 10.25% and it sells for $57.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D1?

a) $2.20
b) $3.25
c) $2.69
d) $2.44
e) $2.96

Reference no: EM1333136

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