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Question 18 0.75 pts Firm ABC just paid the annual dividend of $1.00 per share. Management just announced that future dividends will increase by 5
Question 18 0.75 pts Firm ABC just paid the annual dividend of $1.00 per share. Management just announced that future dividends will increase by 5 percent annually in the first three years and 2 percent annually afterwards. What is the formula expression of the dividend in year 5? [ Select] A. $1.00 (1 + 0.05)2 x (1 +0.02)3 B. $1.00 x (1 + 0.05) x (1 + 0.02)2 C. $1.00 x (1 +0.05) x (1 + 0.02) D. $1.00 x (1 + 0.05)2 x (1 + 0.02)2
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