XYZ plc currently earns $20 per share. It retains 75 per cent of its profits to reinvest at an average return of 16 per cent. Its shareholders require a

return of 15 per cent. What is the dividend value of the first issue (D0) of XYZ's shares?

Select one:

a. 4.54

b. 5

c. 5.54

d. 4