Hirshfeld Corporation's Stock Has a Required Rate of Return of 10.25

question 33

Multiple Choice

Hirshfeld Corporation's stock has a required rate of return of 10.25%, and it sells for $57.50 per share.The dividend is expected to grow at a constant rate of 6.00% per year.What is the expected year-end dividend, D₁?

• A) $2.20
• B) $2.44
• C) $2.69
• D) $2.96
• E) $3.25