TC Corp. paid a dividend today of $5 per share. The dividend is expected to grow at a constant rate of 6.5% per year. If TC Corp. stock is selling for $50.00 per share, the stockholders' expected rate of return is ??

so we would use Gordon model, which says P0= Div₁/(r-g) therefore, 50=5.325/(r-0.065)

and will get a final answer of 17.5%

However, using Div₀ instead of Div₁ will get us the right answer which is 16.5%, why is that?