Knit 'N Needle Started Paying Dividends 4 Years Ago

question 30

Multiple Choice

Knit 'n Needle started paying dividends 4 years ago.The annual dividends thus far have been $0.35,$0.38,$0.42,and $0.48,respectively.What is the arithmetic average dividend growth rate?

• A) 6.33 percent
• B) 8.58 percent
• C) 9.70 percent
• D) 10.80 percent
• E) 11.13 percent

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Definitions:

Step-Variable Costs

Costs that remain fixed for certain levels of production or capacity but can change in steps when a critical level is surpassed.

Fixed Costs

Expenses that remain constant for a given period of time regardless of the level of outputs or activity.

Step-Fixed Costs

Costs that remain constant for a certain level of activity but jump to a higher level when activity increases beyond that threshold.

Production Line

A production line is an arrangement of machines and workers in a factory where a succession of operations is performed on a product to complete its manufacture.