Financial Management: Core Concepts, Third Edition

Advanced Problems for Spreadsheet Application

These problems are available in MyFinanceLab.

1. Dividend history and dividend growth rates. Following is a recent twenty-year period in the history of Chevron. Given these data, construct the average dividend growth rate of Chevron quarter by quarter. Restate the quarterly rate as an annual rate. Find the growth rate using the formula g = (FV/PV)^1/n - 1, where FV is the last dividend in the dividend history, PV is the first dividend in the dividend history, and n is the number of dividend changes (the number of dividends minus 1). Find both the quarterly dividend change and the annual dividend change. Restate the quarterly average as an annual average using both the simple and the compounding approaches. ...