Givens, Inc., is a fast-growing technology company that paid a $1.25 dividend last week. The company's expected dividend growth rates over the next four years are as follows: 23 percent, 35 percent 37 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 9 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends? (Do not round intermediate calculations. Round final answer to two decimal places.) $87.37 O $110.10 O $91.23 O $83.61
Givens, Inc., is a fast-growing technology company that paid a $1.25 dividend last week. The company's expected dividend growth rates over the next four years are as follows: 23 percent, 35 percent 37 percent, and 30 percent. The company then expects to settle down to a constant-growth rate of 9 percent annually. If the required rate of return is 12 percent, what is the present value of the dividends? (Do not round intermediate calculations. Round final answer to two decimal places.) $87.37 O $110.10 O $91.23 O $83.61
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 16MC
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![Givens, Inc., is a fast-growing technology company that paid a $1.25 dividend last week.
The company's expected dividend growth rates over the next four years are as follows: 23
percent, 35 percent 37 percent, and 30 percent. The company then expects to settle down
to a constant-growth rate of 9 percent annually. If the required rate of return is 12
percent, what is the present value of the dividends? (Do not round intermediate
calculations. Round final answer to two decimal places.)
$87.37
O $110.10
O $91.23
O $83.61](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf41330e-a48e-446a-9d11-85f1807e94a0%2Fc21c0d29-4a3b-45e1-8321-7a6c5bd38b51%2F942c2rk_processed.png&w=3840&q=75)
Transcribed Image Text:Givens, Inc., is a fast-growing technology company that paid a $1.25 dividend last week.
The company's expected dividend growth rates over the next four years are as follows: 23
percent, 35 percent 37 percent, and 30 percent. The company then expects to settle down
to a constant-growth rate of 9 percent annually. If the required rate of return is 12
percent, what is the present value of the dividends? (Do not round intermediate
calculations. Round final answer to two decimal places.)
$87.37
O $110.10
O $91.23
O $83.61
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