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Sugar Cookies will pay an annual dividend of $1.23 a share next year. The firm expects to increase this dividend by 8 percent per year the following four years and then decrease the dividend growth to 2 percent annually thereafter. Which one of the following is the correct computation of the dividend for Year 7?
A. ($1.23) ×(1.08)4×(1.02)2
B. ($1.23) ×(1.08 ×4) ×(1.02 ×2)
C. ($1.23) ×(1.08 ×4) ×(1.02 ×3)
D. ($1.23)× (1.08)4×(1.02)4
E. ($1.23) ×(1.08)4×(1.02)3


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