# 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

https://brainmass.com/economics/barriers-to-growth/question-about-expected-year-end-dividend-338772

#### Solution Preview

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

#### Solution Summary

Expected Year-End Dividend

$2.19