In a stream of past dividends, the initial dividend is $1.25 and the most recent dividend is $1.80. The number of years between these two dividends (n) is 7 years. What is the average growth rate during this seven-year period?

Use a calculator to determine your answer.
A) 4.35%
B) 5.35%
C) 6.35%
D) 7.35%

Answer: B
Explanation: B) With N = 7, PV = -1.25, FV = 1.80, and PMT = 0, we get I/Y = 5.3473, or about 5.35%.

Business

You might also like to view...

Calculate the percentage cost of goods sold by a business if the cost advantage index of the business is 150 and the average percentage cost of goods sold by its top three competitors are 40%, 50%, and 30%, respectively

A) 150 B) 40 C) 60 D) 126 E) 70

Business

Which of the following statements is true of the utilitarian approach to business ethics?

A. It holds that an action is judged desirable if it leads to the maximization of stockholders' wealth. B. The best decisions, from a utilitarian perspective, are those that produce the greatest profits for businesses. C. It recognizes that a business should pursue only those actions where the social benefits outweigh the costs. D. It asserts that managers should not follow ethical norms if they see that others firms are also not following them. E. It fails to consider the idea that actions have multiple consequences.

Business