# Calculate dividend for year 4

Firm X paid an annual dividend of $1.85 per share last year. Management just announced that future dividends will increase by 3 percent annually. What is the amount of the expected dividend in year 4?

1. 1.96

2. 1.91

3. 2.02

4. 2.08

5. 2.14

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Dividend

Firm X paid an annual dividend of $1.85 per share last year. ...

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This solution is comprised of a detailed explanation to answer what is the amount of the expected dividend in year 4.

$2.19