What will the dividend be eight years from now

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ABC Inc. just announced it is increasing its annual dividend to $2.00 next year and establishing a policy whereby the dividend will increase by 3 percent annually thereafter.

Problem 1: What will the dividend be 8 years from now?

Problem 2: How much will one share of this stock be worth 10 years from now if the required rate of return is 9 percent?

Reference no: EM132859060

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