Homework Answers
expected dividend pay (for 2nd year)
ke = d1 / p0
12% = d1 / 30
d1 = 30*.12 = 3.6
expected dividend pay (for 3rd year)
ke = d1 / p0 + g
12% = d1 / 30 + 4%
d1 = 30*.08 = 2.4
note:- in question not specified that dividend calculation required for which year. so we have calculated both year.
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