Four years ago, Bling Diamond, Inc., paid a dividend of $1.35 per share. Bling paid a dividend

Question:

Four years ago, Bling Diamond, Inc., paid a of $1.35 per share. Bling paid a of $1.77 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will grow at 5 percent per year. What will Bling Diamond’s cash be in seven years?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...