--> XC OL Click the following link to access lecture presentation: TVM-Equity DDM.pdfa Click here for Excel TVM functions: TVM Excel Functions - Multiple Cash Flows.xlsx Click here for Excel DDM examples: Ch 7 - DDM Excel Examples.xlsx 10 pts D Question 3 XYZ Corp.just paid a dividend of $1.50. It plans to increase its dividend by 5% per year for the next three years and then reduce the dividend growth rate to 2% per year thereafter. Which of the following expressions correctly calculates the dividend for the company in Year 5? $1.50 x (1 + 0.05)2 x (1 +0.02)2 $1.50 x (1 +0.05)3 x (1 + 2 x 0.02) $1.50 x (1 + 0.05)/(1+0.02)2 $1.50 x (1 +0.05) x (1 +0.02)2 Previous Next > Not saved Submit