Which One of the Following Sets of Dividend Payments Best

Multiple Choice

Which one of the following sets of dividend payments best meets the definition of two-stage growth as it applies to the two-stage dividend growth model?

A) no dividends for 5 years, then increasing dividends forever
B) $1 per share annual dividend for 2 years, then $1.25 annual dividends forever
C) decreasing dividends for 6 years followed by one final liquidating dividend payment
D) dividends payments which increase by 2, 3, and 4 percent respectively for 3 years followed by a constant dividend thereafter
E) dividend payments which increase by 10 percent per year for 5 years followed by dividends which increase by 3 percent annually thereafter