In a Stream of Past Dividends,the Initial Dividend Is $0

question 39

Multiple Choice

In a stream of past dividends,the initial dividend is $0.75 and the most recent dividend is $1.25.The number of years between these two dividends (n) is 8 years.What is the average growth rate during this eight-year period? Use a calculator to determine your answer.

• A)6.59%
• B)6.62%
• C)6.69%
• D)6.72%

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Definitions:

Quartz

A hard, crystalline mineral composed of silicon dioxide, common in many rock types and valued for its clarity and variety of colors.

Sulfide Minerals

Minerals composed of sulfur combined with a metal or semimetal, often associated with the formation of ores.

Impermeable Rocks

Rocks that do not allow water to pass through them due to lack of porosity or permeability.

Deep Canyon

A steep-sided valley typically eroded by a river over geologic time scales, characterized by its significant depth.