Expected dividend =Current price*(rate-growth)
Expected dividend =52.35*(13.1%-4.7%)
Expected dividend =4.40
ANSWER :
Given :
r = 13.1 % = 0.131
P0 = 52.35 ($)
g = 4.7 % = 0.047
Now,
r = D1 / P 0 + g
=> 0.131= D1 / 52.35 + 0.047
=> D1 = (0.131 - 0.047)*52.35 = 4.3974 = 4.40 ($) approx.
So,
A. $4.40 is the ANSWER.
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