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ABC Inc. just announced it is increasing its annual dividend to $2.00 next year and establishing a policy whereby the dividend will increase by 3

ABC Inc. just announced it is increasing its annual dividend to $2.00 next year and establishing a policy whereby the dividend will increase by 3 percent annually thereafter. (1) What will the dividend be six years from now? (2) How much will one share of this stock be worth 8 years from now if the required rate of return is 9 percent?

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