Calculate growth rate in dividends

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Reference no: EM13891872

You buy a share of The Ludwig Corporation stock for $18.75. You expect it to pay dividends of $1.70, $1.802, and $1.9101 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $26.22 at the end of 3 years.

Calculate the growth rate in dividends.

7.00%

9.07%

5.00%

1.70%

6.00%

Reference no: EM13891872

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