You have been tracking the performance of XYZ Construction Ltd (“XYZ”) and are considering a potential investment. The company has just commenced a new financial year, and its shares are currently priced at $42 each. XYZ retains 35% of its annual earnings for reinvestment and has maintained a steady dividend growth rate of 3% per annum.

If your required rate of return is 9%, and you expect the company to maintain its dividend growth indefinitely, what would be your estimate of:

(i) the dividend per share at the end of the current financial year?