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XYZ Corp. will pay a dividend of $2.00 a year from today. Thereafter, it plans to increase its dividend by 2% per year for the
XYZ Corp. will pay a dividend of $2.00 a year from today. Thereafter, it plans to increase its dividend by 2% per year for the following three years and then reduce the dividend growth rate to 1% per year thereafter. Which of the following expressions correctly calculates the dividend for the company in Year 7, that is exactly seven years from today? $2.00 x (1 +0.02) x (1 +0.01) $2.00 x (1 +0.02) x (1 +0.01) $2.00 x (1 +0.02)/(1+0.01) $2.00 x (1 +0.02) x (1 +0.01)
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