The Glass Ceiling paid an annual dividend of $1.64 per share last year and just announced that future dividends will increase by 1.3 percent annually.What is the amount of the expected dividend in Year 6?

Question

Quizplus · Accepted Answer

The expected dividend in Year 6 can be calculated using the formula for future dividends: D6 = D0 * (1 + g)^6, where D0 is the last dividend ($1.64) and g is the growth rate (1.3% or 0.013). So, D6 = $1.64 * (1.013)^6 = $1.77.

The Glass Ceiling Paid an Annual Dividend of $1