In its latest annual report just released online, Ottocell Motor Company said that it retained only 65% of its total earnings of $18.5million. There are 4,627,713 shares outstanding, of which 20% is traded on the stock exchange. 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?
Multiple Choice
$0.99
$2.38
$1.98
$1.60