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