At the beginning of a 5 year transition phase, the dividend growth rate is 24%; at the end at 9%. For year 2 of the transition phase, the expected growth rate used would be

Question

Quizplus · Accepted Answer

The expected growth rate for year 2 of the transition phase would be the average of the growth rates at the beginning and end of the phase, which is (24% + 9%) / 2 = 16.5%.

At the Beginning of a 5 Year Transition Phase, the Dividend