Over the past 4 years, a local firm has paid annual dividends of $1.52, $1.55, $1.60, and $1.68. What is the arithmetic average dividend growth rate?

Question

Quizplus · Accepted Answer

The arithmetic average dividend growth rate is calculated as (Ending Dividend - Beginning Dividend) / Beginning Dividend * 100. In this case, the beginning dividend is $1.52 and the ending dividend is $1.68. Therefore, the dividend growth rate is (1.68 - 1.52) / 1.52 * 100 = 3.40%.

Over the Past 4 Years, a Local Firm Has Paid