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Al Aluminum is planning on paying a dividend of $.60 a share next year. They expect t increase this dividend by 20 percent per year
Al Aluminum is planning on paying a dividend of $.60 a share next year. They expect t increase this dividend by 20 percent per year in both years 2 and 3 by 10 percent in year 4. Which one of the following is the correct method of computing the dividend for year 4? Select one:
a. E. $.60 x (1.22 x 1.14)
b. A. $.60 x [{2 x 1.2) +1.1]
c. B. $.60 x (1.2 x 1.1)2
d. D. $.60 x (1.22 x 1.1)
e. C. $.60 x (1.2 + 1.2 + 1.1)
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