(Answered) Dollar amount of capital gain

Finance

The White Hats common stock will pay an annual dividend of $2.20 one year from now. The company increases the dividends by 2.5% annually. Your required return on this stock is 15%. Assume that you purchase the stock today and sell it three years from now.

Required:

Question: What will be the dollar amount of your capital gain for those three years? Please show steps how you get an answer and please be clear in your explanation.

a. $2.99

b. $3.06

c. $2.92

d. $1.32

e. $1.35

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