A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per share of $0.40. its price-earnings ratio equals 22.
The dividend growth rate is the annualized percentage rate of growth that a particular stock's dividend undergoes over some time. Many mature companies seek to increase the dividends paid to their investors regularly.
The periodic dividend growth can be calculated by dividing the current dividend Di by the last dividend Di-1 and subtracting one from the result, then expressed in percentage.
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