Question: Need help understanding the calculations for the problem below. abc inc, just announced it increased its annual dividend to $5 next year and establishing a

Need help understanding the calculations for the problem below.

abc inc, just announced it increased its annual dividend to $5 next year and establishing a policy whereby the dividend will increase by 2 percent annually there after.

a. what will the dividend be 8 years from now?

b. how much will one share of this stock be worth 10 years from now if the required rate of return is 7 percent

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