Average growth rate

This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.

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August 31, 2022 at 4:25 pm #664762
Anonymous
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Mr Moffat, what is the formula to calculate growth rate over a few years?
September 1, 2022 at 7:51 am #664800
John Moffat
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I will give it by example rather than as a formula – this is not a ‘formula learning’ exam.

If dividends in 2016 were $200 and in 2020 were $250 then the average rate of growth is (the 4th root of 250/200) – 1 = 0.0574 or 5.74%

I do explain this in my free lectures!!
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