What is the projected dividend in one year's time, for a stock worth $20 today with a dividend expected to grow at a rate of 5%, with a required rate of return of 10%.

To find the projected dividend in 1 year: Let's call the dividend this year D With 5% growth, the dividend next year will be D * 1.05 Using the required rate of return formula: Stock price = D / (Required rate of return - Growth rate) $20 = D / (0.10 - 0.05) $20 = D / 0.05 D = $1 Therefore, the dividend this year is $1 With 5% growth, the projected dividend in 1 year is $1 * 1.05 = $1.05 Therefore, the projected dividend in one year's time is $1.05