What is the compound growth rate of dividends

Assignment Help Finance Basics

Reference no: EM13270526

ABC Co. has the following dividend payment history:

Year Dividend
2003 $1.00
2004 1.15
2005 1.25
2006 1.35
2007 1.45

a. How many periods of growth are there in the information given?

b. What is the compound growth rate of dividends?

c. Calculate the year-to-year growth rates in dividends.

d. What is the average year-to-year dividend growth rate?

e. Assume a retention ratio of 0.45 and a historical return on equity (ROE) of 0.18. Using these two additional pieces of information, calculate an alternative estimate of dividend growth rate, g.

Reference no: EM13270526

Questions Cloud

The hypothetical metal has a face-centered cubic unit cell : A hypothetical metal has a face-centered cubic unit cell with the edge length of 4.566 Å. Calculate the radius of the metal atom.

How much does the investor gain or lose : An investor enters into a short forward contract to sell 100,000 British pounds for US dollars at an exchange rate of 1.4000 US dollars per pound. How much does the investor gain or lose if the exchange rate at the end of the contract is.

What minimum tracking bandwidth must tdrs receiver possess : What minimum tracking bandwidth must the TDRS receiver possess in order to accommodate the Doppler effect (Hint: you need to include both the velocity of the LEO satellite and the velocity of the GEO satellite. To the LEO satellite, the GEO satell..

Compute the radius of the metal atom : A hypothetical metal has a simple cubic unit cell with the edge length of 4.123 Å. Calculate the radius of the metal atom.

What is the compound growth rate of dividends : Assume a retention ratio of 0.45 and a historical return on equity (ROE) of 0.18. Using these two additional pieces of information, calculate an alternative estimate of dividend growth rate, g.

What are the differences in integrator and differentiators : What are the similarities and differences between the integrator and differentiator. What is a practical application where you would use an integrator or a differentiator.

Compute the net work done on the plane : The model airplane in Figure 5.6 is flying at a speed of 11.6 m/s on a horizontal circle of radius 19.9 m. The mass of the plane is 1.12 kg. What is the net work done on the plane

Explain the formation of the insoluble hydroxide : If hydroxide ion is formed, the OH- may react with some of the Fe3+ to produce an insoluble hydroxide. Will the percent yield of the iron (III) compound containing a complex ion be affected by the formation of the insoluble hydroxide

What is the net worth ratio and the debt : What is the debt/net worth ratio and the debt to total assets ratio for a firm with total debt of $600,000 and equity of $400,000?

User Account

All Pages