Four years ago, Bling Diamond, Inc. paid a dividend of $1.29 per share. Bling paid a dividend of $1.9 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the past four years. Thereafter, dividends will grow by 8% annually. What will Bling Diamond's cash dividends be seven years from now?

Answer rating: 100% (QA)

We can break down the problem into two parts First we need to find the growth rate of dividends over ... View the full answer