A stock has a present dividend of $1, and you forecast next year's dividend will be $3. The growth rate is

Question

Quizplus · Accepted Answer

To find the growth rate, we need to calculate the percentage increase from the initial value to the final value. If the price of a product increases from $50 to $150, the difference is $100 ($150 - $50). To find the percentage, we divide the difference by the initial value and multiply by 100:

($100/$50) x 100 = 200%

Therefore, the growth rate is 200%.

A Stock Has a Present Dividend of $1, and You