What is the expected dividend to Be paid in three years if yesterday's dividend was $6.00, dividends are expected to grow at a constant 6 percent annual rate, and the firm has a 10 percent expected return?
A) $6.75
B) $7.15
C) $7.80
D) $9.37 D3 = Do x (1 + g) 3
= $6.00 (1.06) 3
Correct Answer:
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