Question $2$

$1\mathrm{.}5pts$

XYZ Company currently pays a dividend of $$0\mathrm{.}50$ per share. If this dividend is expected to rise at a constant rate of $5\%,$ what dividend amount will be paid $40$ years from now?

$$0\mathrm{.}50$

$$2\mathrm{.}00$

$$3\mathrm{.}52$

$$2\mathrm{.}50$