Assume that Big Hat paid a $1.12 annual dividend in the previous period. What is the dividend growth rate based on this quote?

Question

Quizplus · Accepted Answer

The dividend growth rate is calculated by taking the difference between the current dividend and the previous dividend, divided by the previous dividend. If the current dividend is not provided, we cannot calculate the exact growth rate. However, based on the options, 16.07% is the closest reasonable estimate for a typical dividend growth rate.

Assume That Big Hat Paid a $1