USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM

Consider a firm that has just paid a dividend of $$2.$ An analyst expects dividends to grow at a rate of $8$ percent per year for the next five years. After that dividends are expected to grow at a normal rate of $5$ percent per year. Assume that the appropriate discount rate is $7$ percent.

Refer to Exhibit $8\mathrm{.}3.$ The dividends for years $1,2,$ and $3$ are

a$.$ $$2\mathrm{.}16,$$$2\mathrm{.}33,$ and $$2\mathrm{.}52.$

b$.$ $$2,$$$2\mathrm{.}05,$ and $$2\mathrm{.}10.$

c$.$ $$2\mathrm{.}16,$$$2\mathrm{.}24,$ and $$2\mathrm{.}32.$

d$.$ $$2,$$$2\mathrm{.}08,$ and $$2\mathrm{.}16.$

e$.$ $$2\mathrm{.}07,$$$2\mathrm{.}14,$ and $$2\mathrm{.}21.$