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Business, 14.11.2019 20:31 Bigbabybrudis

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)4
b. ($1.23) ×(1.08 ×4) ×(1.02 ×3)
c. ($1.23) ×(1.08)4×(1.02)3
d. ($1.23) ×(1.08)4×(1.02)2
e. ($1.23) ×(1.08 ×4) ×(1.02 ×2)

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