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Find both the arithmetic growth rate and the geometric growth rate of the dividends for Davy's Crock Pot Stores. Assuming the January 1, 2011 price
Find both the arithmetic growth rate and the geometric growth rate of the dividends for Davy's Crock Pot Stores. Assuming the January 1, 2011 price of the stock is $90.00, determine the current required rate of return for the company (use the geometric growth rate to calculate the required return.) 2003 2004 2008 Year Dividend 2001 $7.31 2002 $7.82 2009 2005 $9.05 2006 $9.41 2007 $10.07 2010 $11.65 $8.37 $8.70 $10.47 $10.89 What is the arithmetic growth rate of the dividends for Davy's Crock Pot Stores? % (Round to two decimal places.) What is the geometric growth rate of the dividends for Davy's Crock Pot Stores? % (Round to two decimal places.) What is the required rate of return for Davy's Crock Pot Stores? % (Round to two decimal places.)
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