Aar Home Grades Personalized Reviews Discussion Course Mater

Aar Home Grades Personalized Reviews Discussion Course Materials Final Exam-Chapters 7-11, 14,16 Time Remaining: 112 minutes Back to Assignment Deadline Today at 09:00 PM GLC Corporation just paid a dividend of $1.60 a share (i.e.DO-$1.60A?A ). The dividend is expected to grow 9% a year for the next 3 years and then at 5% a year thereafter, what is the expected dividend per share for fifth year (DS)? 14. O A. $2.14 0 B. $1.96 C. $2.04 D. $2.28 Continue without saving Copyright Notices Terms of UsePrivacy NoticeSecurity NoticeAccessibility

Solution

Answer is 2.28

Year	Dividend last year	Growth rate	Expected dividend
1	1.6	9%	1.744
2	1.744	9%	1.90096
3	1.90096	9%	2.0720464
4	2.0720464	5%	2.17564872
5	2.17564872	5%	2.284431156