Sugar Cookies Will Pay an Annual Dividend of $1

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 × 3)
B) ($1.23) × (1.08 × 4) × (1.02 × 2)
C) ($1.23) × (1.08) ⁴ × (1.02) ²
D) ($1.23) × (1.08) ⁴ × (1.02) ³
E) ($1.23) × (1.08) ⁴ × (1.02) ⁴