What is the correct answer and why? I thought D was right but my teacher said it is incorrect and to read the question carefully. Would it be C; (1.37)x(1.08)^4x(1.02)^2 because the first year's dividend is acounted for as 1.37 so then after another 4 years at 1.08 the remaining years would be 2 years at 1.02 to get the 7th year computation?

XYZ Corporation will pay an annual dividend of $1.37 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. ($1.37) x (1.08 x 4) *(1.02 x 3) B. ($1.37) (1.08 x 4) (1.02 x 2) C. ($1.37) (1.08)4 x (1.02)2 D. ($1.37) x (1.08)4 x (1.02)3 Incorrect E. ($1.37) (1.08)4 x (1.02)4