Compute the present value of these dividends

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Fresno Corp. is a fast-growing company that expects to grow at a rate of 21 percent over the next two years and then to slow to a growth rate of 16 percent for the following three years. If the last dividend paid by the company was $2.15.

What is the dividend for 1st year?

What is the dividend for 2nd year?

What is the dividend for 3rd year?

What is the dividend for 4th year?

What is the dividend for 5th year?

Compute the present value of these dividends if the required rate of return is 14 percent.

 

Reference no: EM13268143

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