Ottocell Motor Company Just Paid a Dividend of $1

Multiple Choice

Ottocell Motor Company just paid a dividend of $1.40. Analysts expect its dividend to grow at a rate of 10 percent next year, 8 percent for the following two years, and then a constant rate of 5 percent thereafter. What is the expected dividend per share at the end of year 5?

A) $2.08
B) $1.98
C) $1.80
D) $0.99