basic futures spot question increase, decrease, interest, question

noel

For futures on stock, if you have dividend you subtract the PV of Dividend (PVD) from the Spot price and then times the (1+ Rf)^n

1) So FP = (Spot - PVD)(1+Rf)^n So dividend decrease the value of the futures price.

In Schweser's explanation it says
"An increase in the growth rate in dividend for stocks would increase the spot price of the equity index. As the spot price increases, the future price for a given maturity also increases (holding interest rates constant).

Isn't it if the Dividend increases (PVD also increases) it'll decrease the FP? And why would Spot price increase when dividend increase?

2) This seems like a basic question and I think I'm just lacking a principle understanding of futures. Is this logic correct?
Long the futures contract has the obligation to buy the underlying asset at the fixed determined price. So someone who longs a futures contract on the equity stock doesn't have the stock yet. The seller has the stock so (if it is dividend paying) the dividend decreases the price of the futures b/c the seller is getting compensated for holding asset.

ryanlb

1) .... argh.... I think my brain is fried... such.. simple logic... and I didn't see it...