What is the dividend at the end of year 5?

“Use the following information to answer this and the next question.
Dividends of Super Drug, Inc. will grow at 25 percent a year for the next 3 years, 18 percent a year for years 4-6, and at a constant rate of 5 percent thereafter. The company just paid a dividend of $1.50 and you require a 15% rate of return from stocks with this risk level. ”

What is the dividend at the end of year 5?

a. 2.34
b. 2.93
c. 3.46
d. 4.08