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Next year, CurtisCorp has announced that it will pay a $1.23 per share dividend. In the four years that follow, CurtisCorp expects to increase its

Next year, CurtisCorp has announced that it will pay a $1.23 per share dividend. In the four years that follow, CurtisCorp expects to increase its dividend by 8% per year. Thereafter, CurtisCorp will decrease the dividend growth by 2% annually thereafter.

The correct calculation for the dividend in the seventh year is:

(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; or

(e) ($1.23) (1.08)4 (1.02)4.

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