Chapter 7: Stock Valuation 8. Genentech is expecting both carnings and dividends to grow by 15% in Year 1,0% in Year 2, by 5% in Year 3 , and at a constant rate of 10 percent in Year 4 and thereafter. The required return on Genentech is 15 percent, and it selis at its equilibrium current price 530.63. What is the approximate value of its expected dividend next year? A) 50 B) 51.25 C) 51.75 D) $2.05 E) $2.85