Blue Water Tours has paid annual dividends of $2.10, $2.12, $2.15, $2.15, and $2.22 over the past 5 years, respectively. What is the arithmetic average growth rate for these dividends?

Question

Quizplus · Accepted Answer

The arithmetic average growth rate is calculated by finding the growth rate for each year, summing them, and then dividing by the number of years. The growth rates are approximately 0.95%, 1.42%, 0%, and 3.26%. The average of these is approximately 1.41%.

Blue Water Tours Has Paid Annual Dividends of $2