Problem:
Dividend growth rate is important to many investors. You are considering investing in a firm after looking at the firm's dividends over a seven-year period. At the end of the year 2002, the firm paid a dividend of $1.35. At year-end 2009, it paid a dividend of $1.84.
Required:
Question: What was the average annual growth rate of dividends for this firm?
Note: Please describe comprehensively and provide step by step solution.