'the oil search Ltd currently pays a cash dividend of $5 per share.the dividend will be increased by 4% each year indefinitely.How big will the dividend be in eight years?'.
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let the dividend at end of 8 years be A
A = P(1+R/100)^t
= 5 ( 1 + 4/100)^8
= 5 (1.04)^8
= 5 x 1.3686
= 6.843
the dividend per share will be $6.843.
A = P(1+R/100)^t
= 5 ( 1 + 4/100)^8
= 5 (1.04)^8
= 5 x 1.3686
= 6.843
the dividend per share will be $6.843.
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