Dividend Growth Annual dividends of Wal-Mart Stores (WMT)grew from $0.23 in 2000 to $0.83 in 2007.What was the annual growth rate?

Question

Quizplus · Accepted Answer

The annual growth rate can be calculated using the formula:
Annual growth rate = ((Ending value/Beginning value)^(1/number of years)) - 1
Here, the beginning value is $0.23, the ending value is $0.83, and the number of years is 7 (2007 - 2000 = 7).
Annual growth rate = (($0.83/$0.23)^(1/7)) - 1 = 0.2012 or 20.12%
Therefore, the correct answer is (B) 20.12 percent.

Dividend Growth Annual Dividends of Wal-Mart Stores (WMT)grew from $0