Balthrop Co. is a new education consulting firm that just paid its annual dividend of $1.00 yesterday. Analysts believe that due to a special one-time boost in revenue, the following year’s dividend (t=1) will be $3.50. Dividends will decline at a 30% rate for 2 years, after which point they will grow at a steady rate of 3% forever. Similar firms in the industry have a 20% cost of capital associated with them.

What is the dollar amount of the dividend at the end of year 3 (t=3), rounded to the nearest penny?