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First, please follow the steps to calculate expected growth rate of dividends (g): Obtain annual dividends by adding quarterly dividends in each given year. Calculate
First, please follow the steps to calculate expected growth rate of dividends (g):
- Obtain annual dividends by adding quarterly dividends in each given year.
- Calculate percentage changes of annual dividends year over year = (D1/DO) -1.
- Average the four percentage changes. This average will serve as the 'g' the expected growth rate.
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