McCann Corporation follows a stable dollar dividend policy in which the dividend is increased only if earnings per share (EPS) reaches a level 50% above its value at the last dividend change. The dividend was last raised at the end of Quarter #1. McCann's EPS for Quarters 1 through 5 are given in Table 16C. In which quarter should McCann next raise its dividend?

A. Quarter 5.

B. Quarter 4.

C. Quarter 2.

D. Quarter 3.

Table 16B Quarter EPS 1 $2.00 $2.50 $2.85 4 $2.90 5 $3.10 wo