Dividend Growth Rate Is Important to Many Investors

Multiple Choice

Dividend growth rate is important to many investors.You are considering investing in a firm after looking at the firm's dividends over a seven-year period.At the end of the year 2002,the firm paid a dividend of $1.15.At year-end 2009,it paid a dividend of $1.84.What was the average annual growth rate of dividends for this firm?

A) 7.25%
B) 9.86%
C) 6.94%
D) There is not enough information to answer this question.