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Firm X just paid a dividend of $2.50 today. Suppose that the firm’s dividend is expected...

Firm X just paid a dividend of $2.50 today. Suppose that the firm’s dividend is expected to grow at a rate of 18 percent per year for the next three years. After that, dividend growth is expected to slow to 3 percent per year and remain at that level into the foreseeable future. What is the dividend at the end of year 4 (Div 4)? Group of answer choices

$4.23

$4.11

$3.48

$2.95

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Answer to the Question is "$4.23"

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