Compounded annual growth rate of the dividend

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Reference no: EM132071101

Let's say a company pays a quarterly dividend. You just collected a $1 dividend today. Over the next five years, you expect the quarterly dividend to growth to the following amounts as of the end of each annual anniversary:

After 1 year, $1.1

After 2 years, $1.15

After 3 years , $1.25

After 4 years, $1.30

After 5 years, $1.45

Assuming annual compounding, what is the compounded annual growth rate of the dividend?

Reference no: EM132071101

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