31 The dindend is expected to grow 6 a year forever that is

31 ), The dindend is expected to grow 6% a year forever that is the expected FIA Industries yust paid a dividend of dividend per share for year 3 (i.e. D j)? Round your answers to two decimal places $3.1 a share (ie, Do

Solution

Expected dividend in year 3 = D0*(1+g)^3 Where,, = 3.1*(1+0.06)^3 D0 3.1 = $ 3.69 g 6%