Question

Find the average annual growth rate of the dividends for each firm listed in the following table.

Dividend Payment per Year

Firm	2006	2007	2008	2009	2010	2011
Loewen	​$1.001.00	​$1.051.05	​$1.101.10	​$1.221.22	​$1.251.25	​$1.351.35
Morse	​$1.001.00	​$0.950.95	​$0.800.80	​$1.201.20	​$1.201.20	​$1.451.45
Huddleston	​$1.251.25	​$2.752.75	​$3.703.70	​$3.803.80	​$4.004.00	​$4.754.75
Meyer	​$2.252.25	​$2.502.50	​$2.002.00	​$2.722.72	​$2.802.80	​$3.003.00

A) What is the average annual growth rate of the dividends paid by​ Loewen?

B) What is the average annual growth rate of the dividends paid by​ Morse?

C) What is the average annual growth rate of the dividends paid by​ Huddleston?

D) What is the average annual growth rate of the dividends paid by​ Meyer?

​(Round to two decimal​ places.)

Answer 1