Explore BrainMass
Share

Explore BrainMass

    Calculate dividend for year 4

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Firm X paid an annual dividend of $1.85 per share last year. Management just announced that future dividends will increase by 3 percent annually. What is the amount of the expected dividend in year 4?

    1. 1.96
    2. 1.91
    3. 2.02
    4. 2.08
    5. 2.14

    © BrainMass Inc. brainmass.com October 9, 2019, 9:35 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/calculate-dividend-year-190830

    Solution Preview

    Dividend

    Firm X paid an annual dividend of $1.85 per share last year. ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the amount of the expected dividend in year 4.

    $2.19