Consider a firm that has just paid a dividend of $1.5. An analyst expects dividends to grow at a rate of 9 percent per year for the next three years. After that dividends are expected to grow at a normal rate of 5 percent per year. Assume that the appropriate discount rate is 7 percent.

The dividends for years 1, 2, and 3 are

	a.	$1.5, $2.0, and $2.05.
	b.	$1.64, $1.94, and $2.24.
	c.	$1.5, $2.40, and $3.30.
	d.	$2.07, $2.14, and $2.21.
	e.	$1.64, $1.78, and $1.94.