Problem 9-24 Dividend Growth

Four years ago, Bling Diamond, Incorporated, paid a dividend of $1.95 per share. The company paid a dividend of $2.75 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 4.5 percent per year.

What will the companys cash dividend be in seven years? (Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)