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7-2 Find both the arithmetic growth rate and the geometric growth rate of the dividends for Happenings Inc.. Assuming the January 1, 2011 price of

7-2
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Find both the arithmetic growth rate and the geometric growth rate of the dividends for Happenings Inc.. Assuming the January 1, 2011 price of me stock is $36.00, determine the current required rate of return for the company (use the geometric growth rate to calculate the required retum) Your Dividend 2001 $1.47 2002 $1.61 2003 $2.63 2001 $2.74 2005 $2.83 2000 $2 93 2007 $2.11 2008 $2.25 2009 $2.41 2010 $2.52 What is the arithmetic growth rate of the dividends for Happenings inc? [% (Round to two decimal places) What is the geometric growth rate of the dividends for Happenings Inc.? D% (Round to two decimal places) What is the required rate of return for Happenings inc? % (Round to two decimal places)

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