During the past 8 years, Beef Wellington Cattle Company's common stock dividends have grown from $2.00...
During the past 8 years, Beef Wellington Cattle Company's common stock dividends have grown from $2.00 to $3.19. Estimate the compound annual dividend growth rate over the 8-year period.
Homework Answers
| CAGR = (Ending Balance / Beginning Balance)^(1/n) - 1 | |||||
| CAGR = (3.19/2)^(1/8) - 1 = 1.06 - 1 = 0.06 OR 6% | |||||
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