In a Stream of Past Dividends,the Initial Dividend Is $1

question 84

Multiple Choice

In a stream of past dividends,the initial dividend is $1.25 and the most recent dividend is $1.80.The number of years between these two dividends (n) is 7 years.What is the average growth rate during this seven-year period? Use a calculator to determine your answer.

• A)4.35%
• B)5.35%
• C)6.35%
• D)7.35%