Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for $27.50 per share. The dividend is expected to grow at a constant rate of 6.00% per year. What is the expected year-end dividend, D₁?

Select the correct answer.

a. $1.17

b. $0.57

c. $0.97

d. $0.77

e. $1.37