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Company A just paid an annual dividend of $3.21 a share. The firm expects to increase this dividend by 3 percent per year for the

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Company A just paid an annual dividend of $3.21 a share. The firm expects to increase this dividend by 3 percent per year for the next four years and increase the dividend growth to 6 percent per year thereafter. Which one of the following is the correct computation of the dividend for Year 7? O ($3.21) (1.03)4 x (1.06)2 O ($3.21) (1.06)4 x (1.03)3 O ($3.21) (1.06 x 4) * (1.03 x 2) O ($3.21) (1.03)4 (1.06)3

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