Question

Find the average annual growth rate of the dividends for each firm listed in the following table: E . What is the average annual growth rate of the dividends paid by Loewen? % (Round to two decimal places.) A Data Table - X (Click on the following icon in order to copy its contents into a spreadsheet.) Dividend Payment per Year Firm Loewen Morse Huddleston Meyer 2006 $1.03 $1.00 $1.50 $2.00 2007 $1.05 $0.80 $2.50 $2.20 2008 $1.20 $0.80 $3.50 $2.60 2009 $1.20 $1.30 $3.90 $2.73 2010 $1.26 $1.35 $4.00 $2.80 2011 $1.30 $1.40 $5.25 $2.90 Print Done

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A B C D E F G H I 2007 | Firm Loewen Morse Huddleston Meyer 2006 $1.03 $1.00 $1.50 $2.00 $1.05 $0.80 $2.50 $2.20 2008 $1.20 $0.80 $3.50 $2.60 2009 $1.20 $1.30 $3.90 $2.73 2010 $1.26 $1.35 $4.00 $2.80 2011 $1.30 $1.40 $5.25 $2.90 Firm 2006 Loewen Morse Huddleston Meyer 2007 1.94% -20.00% 66.67% 10.00% Annual Dividend Growth rate 2008 2009 14.29% 0.00% 0.00% 62.50% 40.00% 11.43% 18.18% 5.00% 2010 5.00% 3.85% 2.56% 2.56% 2011 3.17% 3.70% 31.25% 3.57% Firm Loewen Morse Huddleston Meyer Average annual growth rate 4.88% 10.01% 30.38% 7.86%

Cell reference -

A B C D E F G H I 2006 1.03 | Firm Loewen Morse 1 Huddleston Meyer 2007 1.05 .8 2.5 2.2 0 2008 1.2 0.8 3.5 2.6 2009 1.2 1.3 3. 9 2.73 2010 1.26 1.35 2011 1.3 1.4 5.25 2.9 4 1.5 2 2.8 2006 | Firm Loewen Morse Huddleston Annual Dividend Growth rate 2007 2008 2009 2010 2011 =D3/C3-1 =E3/D3-1 =F3/E3-1 =G3/F3-1 =H3/G3-1 =D4/C4-1 =E4/D4-1 |=F4/E4-1 ]=G4/F4-1 =H4/G4-1 =D5/C5-1 |=E5/D5-1 |=F5/E5-1 | =G5/F5-1 |=H5/65-1 =D6/C6-1 =E6/D6-1 |=F6/E6-1 |=G6/F6-1 =H6/G6-1 Meyer Firm Average annual growth rate Loewen =AVERAGE(D10:H10) Morse =AVERAGE(D11:H11) Huddleston =AVERAGE(D12:H12) Meyer =AVERAGE(D13:H13)

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.