UOP FIN 571 Week 4 WileyPLUS Practice Quiz UOP
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
PV of dividends: Givens, Inc., is a fast growing technology company that paid a $1.25 dividend last week. The<br />
company's expected growth rates over the next four years are as follows: 25 percent, 30 percent, 35 percent, and<br />
30 percent. The company then expects to settle down to a constant-growth rate of 8 percent annually. If the<br />
required rate of return is 12 percent, what is the present value of the dividends over the fast growth phase?<br />
$6.46<br />
$7.24<br />
$8.37<br />
$1.25