For these questions, assume the following:

1. Gross Margin in Year 3 is the same as that in Year 2.

2. Selling and General Expenses are the same proportion of Sales in Year 3 as in Year 2.

3. The useful life of fixed assets in Year 3 is the same as that in Year 2 with no salvage value, where the useful life is calculated using year-end fixed assets (i.e. not the average).

4. Fixed Assets (Gross) Turnover is the same in Year 3 as in Year 2, where the turnover is calculated using the average fixed assets.

5. Interest Expense is calculated as 4% of the year-end balances of the Bank Loans and Long-term Debt.

6. Income Tax Rate - i.e. Income Taxes as a % of Income Before Taxes - is the same in Year 3 as in Year 2.

7. Dividend Payout Ratio is the same in Year 3 as in Year 2.

8. Receivable Days are the same in Year 3 as in Year 2, where the days are calculated using the average balances.

9. Inventory Days are the same in Year 3 as in Year 2, where the days are calculated using the average balances.

10. Payable Days are the same in Year 3 as in Year 2, where the days are calculated using the average balances.

11. There is no change in year-end balances of Cash, Long-term Debt, and Common Shares in Year 3.

[Integrated Question] Suppose the annual sales growth in Year 3 is 6%. What is the forecasted Dividends in Year 3?