Let's say a company pays a quarterly dividend. You just collected a $1 dividend today. Over the next five years, you expect the quarterly dividend to growth to the following amounts as of the end of...




Let's say a company pays a quarterly dividend.  You just collected a $1 dividend today.  Over the next five years, you expect the quarterly dividend to growth to the following amounts as of the end of each annual anniversary:


After 1 year, $1.1


After 2 years, $1.15


After 3 years , $1.25


After 4 years, $1.30


After 5 years, $1.45


Assuming annual compounding, what is the compounded annual growth rate of the dividend?





Question 36 options:










































A)



9%






















B)



6.7%






















C)



9.1%






















D)



7.7%






















E)



8.7%









Jun 06, 2022
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