You own the stock of Pettersson and its current price is
$36.00/share. It pays no dividend today. Based on your own
research, you expect Pettersson to pay its first dividend of
$2.50/share at the end of Years 1, 2, and 3 (12, 24, and 36 months
from now). Given its performance outlook, you further expect the
Board of Pettersson to increase the Year 4 dividend by 10% to
$2.75; and then to increase it further by 4% annually for the...