The Arithmetic Average Dividend Growth Rate Is

question 112

Multiple Choice

The arithmetic average dividend growth rate is:

• A)the compounded rate of growth over a specified time period.
• B)easier to compute than the geometric average dividend growth rate.
• C)the summation of the annual dividend growth rates.
• D)generally preferred over the geometric average growth rate by most financial analysts.
• E)generally larger than the geometric average growth rate when the annual growth rates are positive.

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Central Tendency Error

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