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Find both the arithmetic growth rate and the geometric growth rate of the dividends for Public Markets. (Click on the following icon in order to copy its contents into a spreadsheet.) Year Dividend $11.38 $12.24 $13.13 $14.44 $15.53 $16.32 2001 2003 2004 2005 2006 2008 2002 2007 2009 2010 $17.21 $18.15 $18.77 $16.19 What is the arithmetic growth rate of the dividends for Public Markets? % (Round to two decimal places.) What is the geometric growth rate of the dividends for Public Markets? % (Round to two decimal places.)

Find both the arithmetic growth rate and the geometric growth rate of the dividends for Public Markets. (Click on the following icon in order to copy its contents into a spreadsheet.) Year Dividend $11.38 $12.24 $13.13 $14.44 $15.53 $16.32 2001 2003 2004 2005 2006 2008 2002 2007 2009 2010 $17.21 $18.15 $18.77 $16.19 What is the arithmetic growth rate of the dividends for Public Markets? % (Round to two decimal places.) What is the geometric growth rate of the dividends for Public Markets? % (Round to two decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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### Dividend Data Over the Years The table below provides a historical overview of dividend values from the year 2001 to 2010. Each column represents a year, and the corresponding value below shows the dividend for that year. | Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |-------|------|------|------|------|------|------|------|------|------|------| | Dividend | 11.38 | 12.24 | 13.13 | 14.44 | 15.53 | 16.32 | 17.21 | 18.15 | 18.77 | 16.19 | #### Analysis: - **Trend Observation**: The dividend values show a general upward trend from 2001 through 2009, indicating growth. - **Peak and Decline**: The highest dividend value is 18.77 in 2009. However, there is a slight decline in 2010 to 16.19. - **Consistency**: Except for the slight decrease from 2009 to 2010, the dividends consistently increase each year. This data can be used to study the historical growth of dividends, potentially reflecting the financial health and profitability of the company or entity responsible for the dividend distribution during this period.
Transcribed Image Text:### Dividend Data Over the Years The table below provides a historical overview of dividend values from the year 2001 to 2010. Each column represents a year, and the corresponding value below shows the dividend for that year. | Year | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |-------|------|------|------|------|------|------|------|------|------|------| | Dividend | 11.38 | 12.24 | 13.13 | 14.44 | 15.53 | 16.32 | 17.21 | 18.15 | 18.77 | 16.19 | #### Analysis: - **Trend Observation**: The dividend values show a general upward trend from 2001 through 2009, indicating growth. - **Peak and Decline**: The highest dividend value is 18.77 in 2009. However, there is a slight decline in 2010 to 16.19. - **Consistency**: Except for the slight decrease from 2009 to 2010, the dividends consistently increase each year. This data can be used to study the historical growth of dividends, potentially reflecting the financial health and profitability of the company or entity responsible for the dividend distribution during this period.
**Dividends Data for Public Markets: An Analysis** This section focuses on finding both the arithmetic growth rate and the geometric growth rate of dividends for Public Markets over a ten-year period from 2001 to 2010. **Dividend Data (2001-2010):** | Year | Dividend | |------|----------| | 2001 | $11.38 | | 2002 | $12.24 | | 2003 | $13.13 | | 2004 | $14.44 | | 2005 | $15.53 | | 2006 | $16.32 | | 2007 | $17.21 | | 2008 | $18.15 | | 2009 | $18.77 | | 2010 | $16.19 | **Tasks:** 1. **Calculate the Arithmetic Growth Rate:** Determine the average increase per year over the given period. 2. **Calculate the Geometric Growth Rate:** Identify the constant percentage that the dividend grows by each year when compounding annually. (For both calculations, results should be rounded to two decimal places.) This analysis will help in understanding the trends in dividends for Public Markets, providing insight into financial performance over the specified years.
Transcribed Image Text:**Dividends Data for Public Markets: An Analysis** This section focuses on finding both the arithmetic growth rate and the geometric growth rate of dividends for Public Markets over a ten-year period from 2001 to 2010. **Dividend Data (2001-2010):** | Year | Dividend | |------|----------| | 2001 | $11.38 | | 2002 | $12.24 | | 2003 | $13.13 | | 2004 | $14.44 | | 2005 | $15.53 | | 2006 | $16.32 | | 2007 | $17.21 | | 2008 | $18.15 | | 2009 | $18.77 | | 2010 | $16.19 | **Tasks:** 1. **Calculate the Arithmetic Growth Rate:** Determine the average increase per year over the given period. 2. **Calculate the Geometric Growth Rate:** Identify the constant percentage that the dividend grows by each year when compounding annually. (For both calculations, results should be rounded to two decimal places.) This analysis will help in understanding the trends in dividends for Public Markets, providing insight into financial performance over the specified years.
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