Dividend Growth Annual dividends of Pfizer, Inc. (PFE) grew from $0.38 in 2000 to $1.15 in 2007. What was the annual growth rate?

Question

Quizplus · Accepted Answer

To calculate the annual growth rate, we can use the following formula: 
Annual Growth Rate = ((Ending Value / Beginning Value)^(1/Number of Years)) - 1

Plugging in the given values, we get: 
Annual Growth Rate = (($1.15 / $0.38)^(1/7)) - 1 = 17.14%

Therefore, the correct choice is B) 17.14%.

Dividend Growth Annual Dividends of Pfizer, Inc