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Firm ABC is going to pay an annual dividend of $2.00 per share. Management just announced that future dividends will increase by 10 percent annually

Firm ABC is going to pay an annual dividend of $2.00 per share. Management just announced that future dividends will increase by 10 percent annually in the first three years and 5 percent annually afterwards.

$2.00 per share is D0 or D1?

Growth rate during year 3 ____ is percent; growth rate during year 4 is _____ percent

What is the amount of the expected dividend in year 4?

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