Question

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find both the arithmetic growth rate and the geographic growth rate of the dividends for Custers...

find both the arithmetic growth rate and the geographic growth rate of the dividends for Custers ice cream shoppes.

year.        dividends

2001.         $1.46
2002.         $2.37
2003.         $3.15
2004.         $4.34
2005.         $5.05
2006.         $6.25
2007.         $7.25
2008.         $8.14
2009.         $7.68
2010.         $6.57

what is arithmetic growth rate of the dividends for Custers ice cream shoppes?

Solutions

Expert Solution

Growth Rate = (Dividend In Current Year - Dividend in Last Year) / Dividend in Last Year *100%

Calculating the growths each year using above formula -

Year Dividends Growth
2001 1.46
2002 2.37 62.33
2003 3.15 32.91
2004 4.34 37.78
2005 5.05 16.36
2006 6.25 23.76
2007 7.25 16.00
2008 8.14 12.28
2009 7.68 -5.65
2010 6.57 -14.45

Arithmetic Growth rate = average of growth rates

= (62.33 + 32.91 + 37.78 + 16.36 + 23.76 + 16.00 + 12.28 - 5.65 - 14.45)/9  

= 20.15 %

jeff jeffy answered 2 years ago
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