Answer:
$6.25 (rounded off)
Explanation:
In this case we first have to find the most recent dividend and then multiply is by (1+Growth rate) in order to find year end dividend. The price of the stock currently is $57.50 and the required rate of return is 10.25% so we can assume that the most recent dividend of the stock was 10.25% of 57.5
Recent dividend = 57.50 *0.1025= 5.89
Year end dividend = Recent dividend *(1 +growth rate)
=5.89*(1+0.06)
= 6.247
