Dragon Trucking just paid its annual regular cash dividend of $4.04 a share, along with a...

Dragon Trucking just paid its annual regular cash dividend of $4.04 a share, along with a special dividend of $0.57 a share. The company follows a policy of increasing its dividend by 4.6 percent annually. Which one of the following is the best estimate of the firm's next annual dividend payment?

Expert Solution

D0 = 4.04

As 0.57 was a special dividend, will not be paid next year.

so D1 = D0*(1+g) = 4.04 *(1 + 0.046) = 4.2258 = 4.23

Answer = 4.23

jeff jeffy answered 2 years ago

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