Fab Co has just paid a dividend of $1. The company pays dividends annually. Dividends are expected to grow at 10% pa for the next two years and for 3% thereafter for the foreseeable future. How much will the dividend be at the end of the fifth year? Answer to the nearest cent, e.g $5.678 should be entered as 5.68. Do not enter the $ sign

For this question, D0= 1 , D1 = 1*(1.1)= 1.1; D2= 1.1*(1.1)^2;= 1.331 , D3 = 1.331 * (1.03) **Do we insert power of 3? since its third year? and the rest of year 3 till 5?

Please help to solve this and explain, thank you :)