Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.
1. Find the expected dividend for each of the next 3 years; in other words, calculate D1, D2 and D3. Note that D0 = $1.75. Round your answers to the nearest cent.
a. D1 = $
b. D2 = $
c. D3 = $