Answer:
$1.75 × (1.03)^2
Explanation:
The computation of the anticipated dividend for the year 3 if the dividend is increased by 3 percent
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $1.75 × (1 + 3%)^2
= $1.75 × (1 + 0.03)^2
= $1.75 × (1.03)^2
We simply applied the above formula so that the correct value could come
And, the same is to be considered
