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Ketch-Me Production is expected to pay a cash dividend of $2.31 per share next year...

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Finance

Ketch-Me Production is expected to pay a cash dividend of $2.31 per share next year (D1) The company is quite risky; its required return is 22 percent and PPS0 =$19.25. What is this years (at t=0) cash dividend, assuming a constant growth rate in cash dividends until infinity? a. $2.31 b. $2.10 c. $3.18 d. $3.45 e. None of the above, the answer is $___________.

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