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	$0.63	$0.73	$0.81	$0.98	$1.12	$1.25	$1.42	$1.56

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Part 1

What is the arithmetic growth rate of the dividends for

Lumber Limited?