" ABC " Company had just paid dividends for this year , and it is expecting both earnings and dividends to grow by 0 % in Year 2 by 5 % in Year 3 , and at a rate of 10 % in Year 4 and thereafter . The required rate of return (r ) on ABC " Company is 15 % , and it is currently selling its stocks at a price of $ 49.87 . Based on the above - given information , What is the expected value of the next dividend, D1?