Description of this paper

PV of dividends: Givens, Inc., is a fast growing t...

Description

Solution


Question

PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase? $6.46 $7.24 $1.25 $8.37

 

Paper#1961 | Written in 18-Jul-2015

Price : $25
SiteLock