The stock for TM Consulting, and all-equity firm, is currently trading at $49 per share, after just having paid a $2.80 per share dividend. Management has not announced their specific dividend amount for next year, but they insist that they will pay a dividend. If analysts project the stock price to be $54.60 after next year's dividend is paid out, and the equity cost of capital (also the discount rate for equity) is 17% for this firm, the expected dividend (for t = 1) should be?

Answer rating: 100% (QA)

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