Question

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

dividend payment per year

firm.         2006.   2007    2008.   2009.   2010.    2011
Loewen. $1.04. $1.05. $1.10. $1.21. $1.25.   $1.35
Morse.    $1.12. $0.97. $0.90. $ 1.10. $1.25. $1.45
Huddle.   $1.00. $2.75. $3.60. $3.80. $3.80. $5.00
Meyer.     $2.25. $2.00. $2.10. $2.73. $2.85. $2.97

Answer 1

Loewen

Annual average growth rate

=((last value/First value)^(1/Time between 1st and last value)-1)*100

=((1.35/1.04)^(1/5)-1)*100

Annual Growth rate% = 5.36

Morse

Annual average growth rate

=((last value/First value)^(1/Time between 1st and last value)-1)*100

=((1.45/1.12)^(1/5)-1)*100

Annual Growth rate% = 5.3

Huddle

Annual average growth rate

=((last value/First value)^(1/Time between 1st and last value)-1)*100

=((5/1)^(1/5)-1)*100

Annual Growth rate% = 37.97

Meyer

Annual average growth rate

=((last value/First value)^(1/Time between 1st and last value)-1)*100

=((2.97/2.25)^(1/5)-1)*100

Annual Growth rate% = 5.71