Find both the arithmetic growth rate and the geometric growth rate of the dividends for Lumber Limited. Assuming the January 1, 2011 price of the stock is $40.00, determine the current required rate of return for the company (use the geometric growth rate to calculate the required return.)

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Dividend $0.46 $0.52 $0.61 $0.74 $0.87 $0.92 $1.02 $1.25 $1.44 $1.55