A firms dividends have grown over the last several years 8 y

A firm\'s dividends have grown over the last several years. 8 years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $4. What was the average annual growth rate of dividends for this firm?

SOLUTION:- leet us use the compounding method to calculate rate of growth

compound amount= principal(1+growth)*

where*= number of years

4=1(1+g)⁸

g=18.93%

$A firm\'s dividends have grown over the last several years. 8 years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $4. What was the average$

A firms dividends have grown over the last several years 8 y

Solution

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