Question

2.Calculate the growth rate of Asset J dividends, we have to assume that future dividend payments will grow at a constant rate into the future forever. This constant rate can be estimated by calculating the average growth rate from the past dividends. Calculate Asset J’s dividend growth rate for the past 8 years.
Year 1 2 3 4 5 6 7 8
Dividend $0.86 $2.00


Let:

Dj = $ .86,
D8 = $2.00,
n = 8.