Answer Questions 12-14 using the information below.

Stanley Corp. paid a dividend of $2.00 in the year that just ended. Analysts expect that dividends will grow by 30% this year, 20% in the second year, and by 10% in the third year. After the third year they plan to maintain a constant retention rate of 50%. Analysts forecast that the return on new equity investment for Stanley Corp. after the third year would be 10%. The required rate of return (r_s) on Stanley Corps stock is 9%.

What are the values of the expected dividends for Stanely Corp. during the first three years?

Group of answer choices

D1=$2.60, D2=$2.40 and D3=$2.20.

D1=$2.20, D2=$2.86 and D3=$3.432.

D1=$2.60, D2=$3.12 and D3=$3.432.

D1=$2.00, D2=$2.60 and D3=$3.12.