Donuts Delite just paid an annual dividend of $1.10 a share. The firm expects to increase this dividend by 8 percent per year the following three 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.($1.10) (1.08 3) (1.02 4)

B.($1.10) (1.08)³ (1.02)⁴

C.($1.10) (1.08)³ (1.02)³