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All Star Industries paid the following annual dividends from 2012 to 2019. 2012 $3.19 2013 $3.67...

All Star Industries paid the following annual dividends from 2012 to 2019.

2012 $3.19

2013 $3.67

2014 $4.04

2015 $4.39

2016 $4.64

2017 $4.89

2018 $5.09

2019 $5.32

What is the compound growth rate of All Star's dividends over the seven year period?

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Expert Solution

Compounded annual Growth rate = [(Ending Balance / Beginning Balance)^1/n - 1]*100%

=[(5.32/3.19)^1/8 - 1]*100% = 6.60%

jeff jeffy answered 2 years ago
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