Compute the Present Value Assignment | Homework For You

Sunland Corp. is a fast-growing company whose management expects it to grow at a rate of 27 percent over the next two years and then to slow to a growth rate of 19 percent for the following three years. If the last dividend paid by the company was $2.15. The year one dividend is 2.731, year 2 3.468, year 3 4.127. year 4 4.911 and year 5 is 5.844. Compute the present value of these dividends if the rate of return is 14%. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) Get Finance homework help today