What will the companys dividend be in seven years

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Four years ago, Bling Diamond, Inc., paid a dividend of $1.65 per share. The company paid a dividend of $2.10 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 5% per year.

Question A. What will the company's dividend be in seven years?

Question B. Based on the dividend growth model, what are the two components of the total return on a share of stock? Which do you think is typically larger?

Reference no: EM133465296

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