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The Arithmetic Average Dividend Growth Rate Is

Question 21

Multiple Choice

The arithmetic average dividend growth rate is:


A) the compounded rate of growth over a specified time period.
B) easier to compute than the geometric average dividend growth rate.
C) the summation of the annual dividend growth rates.
D) generally preferred over the geometric average growth rate by most financial analysts.
E) generally larger than the geometric average growth rate when the annual growth rates are positive.

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