Question

Asked Nov 2, 2019

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Four years ago, Bling Diamond, Inc., paid a dividend of $2.15 per share. The firm paid a dividend of $2.57 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 4 percent per year.

What will the firm’s cash dividend be in seven years? **(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)**

Cash dividend

Step 1

**Calculation of Cash Dividend:**

The cash dividend is **$3.47**.

**Excel Spreadsheet:**

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