Chapter 3 Q3

Dividend growth rate is important to many investors (including Prof V since he likes to sit around playing games while earning money sitting on his couch!). You are considering investing in a firm after looking at the firm's dividends over a six-year period. At the end of the year 2015, the firm paid a dividend of $0.98. At year-end 2021, it paid a dividend of $1.64. What was the average annual growth rate of dividends for this firm? Hint: you care solving for I/YR on the hp10bii calculator, assume annual compounding O 8.25% 9.05% 9.86% 8.96%