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Craddock Corporation follows a stable dollar dividend policy in which the dividend is increased only if earnings per share (EPS) reaches a level 30% above

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Craddock Corporation follows a stable dollar dividend policy in which the dividend is increased only if earnings per share (EPS) reaches a level 30% above its value at the last dividend change. The dividend was last raised at the end of Quarter \#1. Craddock's EPS for Quarters 1 through 5 are given in Table 16A. In which quarter should Craddock next raise its dividend? Quarter 4. Quarter 2. Quarter 3. Quarter 5

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