What is the growth rate on a stock that paid a $1 dividend 12 years ago,...
What is the growth rate on a stock that paid a $1 dividend 12 years ago, and the most recent dividend was $1.80? ( nearest 1%)
Homework Answers
g = (Recent dividend / Past dividend)^(1/t) - 1
g = ($1.80 / $1)^(1/12) - 1
g = 0.0502 or 5.02%
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