Supernormal growth refers to a firm that increases its dividend by:

A) Three or more% per year.
B) A rate which is most likely not sustainable over an extended period of time.
C) A constant rate of 2 or more% per year.
D) $.10 or more per year.
E) An amount in excess of $.10 a year.

Supernormal Growth

A temporary period during which a company experiences significantly higher than average growth rates.

Dividend

A corporation's distribution of earnings to its shareholders, commonly as a profit share.

Sustainable

The ability to maintain or improve certain processes or states indefinitely without exhausting resources or causing severe ecological damage.