Young Sook owns stock in a company which has consistently paid a growing dividend over the last 10 years.The first year Young Sook owned the stock,she received $4.50 per share and in the 10th year,she received $4.92 per share.What is the growth rate of the dividends over last 10 years?
A) 5 percent
B) 4 percent
C) 2 percent
D) 1 percent
E) 3 percent

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc26_d478_a768_9f71c558b316_TB2902_00 - 1
i = 11ea7fdb_fc26_d479_a768_4b32948f82cd_TB2902_00 - 1 = 1%
Using a financial calculator:
N = 9, PV = -4.5, PMT = 0, FV = 4.92, cpt I/Y = .996 or 1%

Young Sook Owns Stock in a Company Which Has Consistently