Genentech is expecting both earnings and dividends to grow by $15\%$ in Year $1,0\%$ in Year $2,$ by $5\%$

in Year $3,$ and at a constant rate of $10$ percent in Year $4$ and thereafter. The required return on Genentech

is $15$ percent, and it sells at its equilibrium current price $$30\mathrm{.}63.$ What is the approximate value of its

expected dividend next year? $(3\mathrm{.}5$ points$)$

A$)$ $$0$

B$)$ $$1\mathrm{.}25$

C$)$ $$1\mathrm{.}75$

D$)$ $$2\mathrm{.}05$

E$)$ $$2\mathrm{.}85$