The stock commands a market rate of return of 125 per year


Rostraver Ice Gardens pays an annual dividend that is expected to increase by 4% per year. The stock commands a market rate of return of 12.5% per year and sells for $22.47 a share. What is the expected amount of the next dividend? Please show work.

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Finance Basics: The stock commands a market rate of return of 125 per year
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