A tech firm has decided on a major investment that will require a substantial early cash outflow and inflows will be relatively late. As a result, it is expected that the firm s dividends will have a negative growth of 5 percent for the first year. Further, the firm expects zero growth for the second year and then to have a constant growth of 6 percent. The firm s required rate of return is 9% and the most recent dividend paid (D0) was $1. Answer the question below. The next dividend (D1) is expected to be:

a. None of the above

b. $0.95

c. $1.00

d. $1.05