Question

Which one of the following is a correct formula for computing a geometric average dividend growth rate?
A. [(1 + D0) + (1 + D1) (1 + DN)]N + 1 - 1
B. [(1 + D0) (1 + D1) (1 + DN)]N - 1 - 1
C. [DN/D0]1/N - 1
D. [D0/DN]N - 1
E. [DN/D0]N/1 - 1

Answer

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