Problem:
Uptown Merchants just announced that it will be paying an annual dividend of $1.60 a share plus an extra dividend of $0.40 a share this coming year. The company also announced that its regular dividend, which is all it anticipates paying after this year, will increase by 2 percent annually.
Requirement:
Question: What is the anticipated dividend per share 4 years from now?
Note: Please provide through step by step calculations.