Ginger Bakers is a bakery in S.E. London that specialises in baked ginger bread men and cream

Question:

Ginger Bakers is a bakery in S.E. London that specialises in baked ginger bread men and cream cakes. Its shares are currently trading at

£63.25 ex -dividend. The company is expected to grow at a constant rate of 7%. If the appropriate discount rate is 17%, what is the expected dividend a year from today?

a. £4.43

b. £3.25

c. £10.75

d. £6.325

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