Question: Need help with this problem. Thanks! 16. You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part

Need help with this problem. Thanks! 16. You applied for an

Need help with this problem. Thanks!

16. You applied for an Equity Analyst position with Goldman Sachs after graduating from College of Charleston. As part of the evaluation process, you have to take a test on stock valuation covering the following questions: Vineyard Vines Companyjust paid a dividend to dividend of $4.5 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 10% over the next year. However, after next year Vineyard Vine's dividend is expected to grow at a constant rate of 3.5% per year. The riskfree rate is 4%, the market risk premium is 5.0%, and Vineyard's beta is 1.25. What is the dividend one year from now, D1? 0 a) 5.23 O b) 6.15 O c) 4.95 Q d) 4.5 0 e) 5.45

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