P4.21 A company paid dividends of $1.00 per share in 2003, and just announced that it will pay

$2.21 in 2010. Estimate the compound annual growth rate of the dividends.

P4.22 A company reported net income in 2006 of $350 million. In 2010, the company expects net income to be $441.7 million. Estimate the annual compound growth rate of net income.

P4.23 The historical returns for two investments—A and B—are summarised in the table below 6 for the period 2007 to 2011. Use the data to answer the questions that follow.