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    Question about Expected year-end dividend

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    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

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    Solution Preview

    Using the Discounted dividend model, we know that p = d/(r-g) where p is ...

    Solution Summary

    Expected Year-End Dividend