Ted's Tools expects to commence paying an annual dividend three years from now. The first dividend is expected to be $.75 per share with all dividends thereafter increasing by 2 percent annually. What is the expected dividend in year 5?

$.75 x (1.02) ^6

$.75 x (1.02) ^5

$.75 x (1.02) ^2

$.75 x (1.02) ^7

$.75 x (1.02) ^4