Question:

Hatstand and Bandstand Inc. stock is selling for $38. The company has been maintaining a constant growth rate of dividends of 5 percent.If the required rate of return for this company is 14 percent, what was the most recent dividend paid by the company?

I had worked it out to be: D=38 X (.14-.05) = 38 X .09 = 3.42, but the answer is actually 3.26. Would someone be able to explain to me where i went wrong?

Thanks!