Texas Tea's dividend policy calls for the dividend to be increased each year by the same rate. Last year, the company paid a dividend equal to $1.50 per share. This year, after the company initiates a 5-for-1 stock split, Texas Tea expects to pay a dividend equal to $0.33 per share. At what rate does Texas Tea increase its dividend each year? Round your answer to two decimal places.
Texas Tea's dividend policy calls for the dividend to be increased each year by the same rate. Last year, the company paid a dividend equal to $1.50 per share. This year, after the company initiates a 5-for-1 stock split, Texas Tea expects to pay a dividend equal to $0.33 per share. At what rate does Texas Tea increase its dividend each year? Round your answer to two decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Texas Tea's dividend policy calls for the dividend to be increased each year by the same rate. Last year, the company paid a dividend equal to $1.50 per share. This year, after the company initiates a 5-for-1 stock split, Texas Tea expects to pay a dividend equal to $0.33 per share. At what rate does Texas Tea increase its dividend each year? Round your answer to two decimal places.
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