By-Your-Leave Travel Agency has reported the dividends listed below.What return could be expected? The price of the stock is $18.(Round the growth rate to the nearest whole percent)
$$\begin{array} { | c | c | }
\hline \text { Years } & \text { Dividends } \
\hline 2010 & \$ 1.12 \
\hline 2011 & \$ 1.15 \
\hline 2012 & \$ 1.18 \
\hline 2013 & \$ 1.21 \
\hline 2014 & \$ 1.24 \
\hline
\end{array}$$

Question

By-Your-Leave Travel Agency has reported the dividends listed below.What return could be expected? The price of the stock is $18.(Round the growth rate to the nearest whole percent)
$$\begin{array} { | c | c | } 
\hline \text { Years } & \text { Dividends } \
\hline 2010 & \$ 1.12 \
\hline 2011 & \$ 1.15 \
\hline 2012 & \$ 1.18 \
\hline 2013 & \$ 1.21 \
\hline 2014 & \$ 1.24 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The dividend growth rate is (1.24/1.12 - 1) * 100 = 10.71%. The expected return is the dividend yield plus the dividend growth rate, which is (1.24/18) + 0.1071 = 0.1811, or 18.11%.

By-Your-Leave Travel Agency Has Reported the Dividends Listed Below A)1011% B)12

By-Your-Leave Travel Agency Has Reported the Dividends Listed Below A)1011%
B)12