Faruk’s Jabukovaca Inc just paid an annual dividend of $1.17 a share. The firm expects to increase this dividend by 5 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 8?
A. ($1.17) (1.05 × 3) (1.02 × 4)
B. ($1.10) (1.08 × 3) (1.02 × 3)
C. ($1.10) (1.08)^3 (1.02)^4
D. ($1.17) (1.05)^3 (1.02)^5
E. ($1.17) (1.05)^3 (1.02)^3