Final answer:
The dividend growth rate requires information from two different periods to calculate. If the dividend was $1.12 and grew to $1.14, the growth rate would be approximately 1.79%. The given 1.4% could be the answer, without additional details from the context.
Step-by-step explanation:
To calculate the dividend growth rate based on a $1.12 annual dividend, we would typically need to have the dividend from the previous period as well as the current dividend. However, with the information given, it appears we need to assume a factor-of-ten growth over a century, which is a 7% annual growth rate according to the Rule of 72. But, if you refer to the quote that hints of a 1.4% growth rate, this could also be the implied answer to the question's context.
Without additional context, such as the dividend paid in the current period or more specific data points from the period mentioned, it's not possible to provide an accurate dividend growth rate for Big Hat. Generally, the growth rate is calculated using the formula: (Current Dividend per Share / Previous Dividend per Share) - 1. This requires information from at least two different time periods.
For example, if a company paid a dividend of $1.12 last year and pays $1.14 this year, the growth rate is calculated as ($1.14 / $1.12) - 1 = 0.0179, or a growth rate of approximately 1.79%.