Givens, Inc., is a fast-growing technology company that paid a $1.25 dividend last week. Thecompany's expected dividend growth rates over the next four years are as follows: 23 percent, 35percent 37 percent, and 30 percent. The company then expects to settle down to a constant-growthrate of 9 percent annually. If the required rate of return is 12 percent, what is the present value ofthe dividends? (Do not round intermediate calculations. Round final answer to two decimal places$83.61$91.23$87.37

Answered: Image /qna-images/answer/0b96a015-7bc6-4d7c-8c6b-436bf63bb303.jpg

Answered: Givens, Inc., is a fast-growing…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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