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Business, 06.06.2020 21:04 MatteBlack5490

XYZ Corporation will pay an annual dividend of $1.37 a share next year. The firm expects to increase this dividend by 8 percent per year the following four years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for Year 7? A. ($1.37) × (1.08 × 4) × (1.02 × 3)
B. ($1.37) × (1.08 × 4) × (1.02 × 2)
C. ($1.37) × (1.08)^4 × (1.02)^22
D. ($1.37) × (1.08)^4 × (1.02)^3E. ($1.37) × (1.08)^4 × (1.02)^4

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