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CVS Health Corporation is a health care company. The management team maintains a stable dividend using the Lintner model:

Dt+1= Dt + ?EPS × Target Payout × ?

Dt (Dt+1) = dividend in the current period t (the next period t + 1)
EPSt = earnings per share in period t
?EPS = EPSt+1– EPSt = change in EPS
Target Payout = target payout ratio = 50%
? = adjustment factor = 0.1

Last quarter, the dividend was $0.5 per share and the earnings per share were $5.10. The management is forecasting that earnings in the upcoming quarter will increase to $5.73 per share. What dividend for next quarter should analysts predict? Make your answer accurate to cents. That is, if your answer is 9.252, write 9.25. Also, do not include symbols (%,$) in your answer.


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