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Need help with this problem. Thanks! 16. You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part

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Need help with this problem. Thanks!

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16. You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part of the evaluation process, you have to take a test on stock valuation covering the following questions: Vineyard Vines Companyjust paid a dividend to dividend of $4.5 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 10% over the next year. However, after next year Vineyard Vine's dividend is expected to grow at a constant rate of 3.5% per year. The riskfree rate is 4%, the market risk premium is 5.0%, and Vineyard's beta is 1.25. What is the dividend one year from now, D1? 0 a) 5.23 O b) 6.15 O c) 4.95 Q d) 4.5 0 e) 5.45

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