The problem asks us to calculate the growth rate of dividends paid by a company from 2018 to 2022. The dividends for each year are given, and we are to express the growth rate as a decimal with four decimal places.

1. Problem Description

The problem asks us to calculate the growth rate of dividends paid by a company from 2018 to

2

0

2

2. The dividends for each year are given, and we are to express the growth rate as a decimal with four decimal places.

2. Solution Steps

Since we are given the dividends for several years, we will calculate the growth rate using the following formula:

$g = (\frac{D_n}{D_0})^{\frac{1}{n}} - 1$

Where:

$g$ = growth rate

$D_n$ = dividend in the final year (2022)

$D_0$ = dividend in the initial year (2018)

$n$ = number of years

In this case:

$D_n = 7.5$

$D_0 = 7$

$n = 2022 - 2018 = 4$

Plugging these values into the formula:

$g = (\frac{7.5}{7})^{\frac{1}{4}} - 1$

$g = (1.071428571)^{\frac{1}{4}} - 1$

$g = 1.017525144 - 1$

$g = 0.017525144$

Rounding to four decimal places, we get $0.0175$.

3. Final Answer

0.0175