Otobai Motor Company Just Paid a Dividend of $1

Multiple Choice

Otobai Motor Company just paid a dividend of $1.40. Analysts expect its dividend to grow at a rate of 18 percent for the next three years and then a constant rate of 5 percent thereafter. What is the expected dividend per share at the end of year 5?

A) $2.35
B) $2.54
C) $2.91
D) $1.50