If the current dividend \( \left(\mathrm{D}^{0}\right) \) is \( \$ 3.00 \) and the growth rate is \( 6 \% \). How much will the dividend be, at Time 5 ?

To find the future dividend at Time 5, we can use the formula for calculating future dividends with constant growth: \[ \mathrm{D}^{t} = \mathrm{D}^{0} \times (1 + g)^t \] where \( \mathrm{D}^{0} \) is the current dividend, \( g \) is the growth rate, and \( t \) is the time in years. Plugging in the numbers: \[ \mathrm{D}^{5} = 3.00 \times (1 + 0.06)^5 \] Calculating it out: \[ \mathrm{D}^{5} = 3.00 \times (1.338225) \approx 4.014675 \] So, the dividend at Time 5 will be approximately \( \$ 4.01 \). Feel free to ask if you'd like to dive deeper into dividend growth models or explore other finance-related queries!