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Generic Electrical's annual dividends increased by 9.19% from $0.67 in 2012 to $1.04 in 2017.
The value of an asset at a future date is its future value. It is the present value multiplied by the accumulation function, and it represents the nominal amount of money that a particular amount of money will be "worth" at a given point in the future under the assumption of a specific interest rate.
FV = PV (1 + r), where r is the periodic interest rate and n is the number of periods.
$ 1.04 = $ 0.67 ( 1 + r )⁵
( 1 + r )⁵ = $1.04 / $0.67
( 1 + r )⁵ = 1.5522
( 1 + r ) = 1.5522¹/₅
( 1 + r ) = 1.0919
r = 1.0919 - 1
r = 0.0919 i.e 9.19 %
Future Value = Present Value x (1 + r)n
9.19% is the annual growth rate or interest rate.
To know more about Future Value, refer to this link:
https://brainly.com/question/11429476
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