McLaughlin Inc 's stock has a required rate of return of 10 50 , and it sells for $67 50 per share McLaughlin 's dividend is expected to grow at a constant rate of 7 00 per year What is the expected year end dividend, D1 a $2 13 b $2 36 c $2 60 d $2 86 e $3 14 ...

McLaughlin Inc.'s stock has a required rate of return of 10.50%, and it sells for $67.50 per

Question:

McLaughlin Inc.'s stock has a required rate of return of 10.50%, and it sells for $67.50 per share. McLaughlin's is expected to grow at a constant rate of 7.00% per year. What is the expected year-end D1?
a. $2.13
b. $2.36
c. $2.60
d. $2.86
e. $3.14

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...