home / study / business / finance / questions and answers / a firm is expected to pay a dividend of $2.00 next ... Question: A firm is expected to pay a dividend of $2.00 next... A firm is expected to pay a dividend of $2.00 next year and $2.14 the following year. Financial analysts believe the stock will be at their target price of $75.00 in two years. Compute the value of this stock with a required return of 10 percent.