Answer Happy

Check In doing a five-year analysis of future dividends the Dawson Corporation is considering the following two plans. The values represent dividends per share Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods Year Pa SO 80 2.20 0:30 20 2200 1.00 1.60 2.60 11.90 1.90 3 9. How much in total dividends per share will be paid under each plan over five years? (Do not round Intermediate calculations and round your answers to 2 decimal places.) Total Dividends Plan A Plan 8
b-1. Mr. Bright, the Vice-President of Finance, suggests that stockholders often prefer a stable didend policy to a highly variable one He will assume that stockholders apply a lower discount rate to dividends that are stable. The discountate to be used for plan is 9 percent the discount rate for Plan Bis 11 percent Compute the present value of future dividends. (Do not round intermediate calculations and round your answers to 2 decimal places.) Present Value of Futuro Dividends Plan A Plan B b-2. Which plan will provide the higher present value for the future dividends? Plan A Plan B 15 of 26 Next > < Prev