28.)

What is value (not PV but absolute value) of D5?

REQUIRED STATEMENT FOR THIS QUESTION (QUESTION 28N) IS SAME AS FOR QUESTION 26N. HOWEVER, I AM PROVIDING YOU THE STATEMENT BELOW FOR YOUR REFERENCE. TO SAVE TIME, YOU MAY NOT NEED TO RE-READ THE STATEMENT.

The following statement is applicable to questions 26N through 30N. If you find stock price P₀ now, you can answer all questions 26N to 30N easily and efficiently

Simpkins Corporation does not pay dividends because it expects rapid growth. However investors expect $0.70 dividends 2 years from today. Dividends should grow at a rate of 120 percent for year 3 and at rate of 90 percent for year 4.

After year 4, the company should grow at a constant annual rate of 9 percent for ever. Assume required return of 12 percent and market equilibrium.

Group of answer choices

$0.56

$2.54

$1.10

$3.19

29.)

What is the value of P4 (not present value but absolute or actual value)?

REQUIRED STATEMENT FOR THIS QUESTION (QUESTION 29N) IS SAME AS FOR QUESTION 26N. HOWEVER, I AM PROVIDING YOU THE STATEMENT BELOW FOR YOUR REFERENCE. TO SAVE TIME, YOU MAY NOT NEED TO RE-READ THE STATEMENT.

The following statement is applicable to questions 26N through 30N. If you find stock price P₀ now, you can answer all questions 26N to 30N easily and efficiently

Simpkins Corporation does not pay dividends because it expects rapid growth. However investors expect $0.70 dividends 2 years from today. Dividends should grow at a rate of 120 percent for year 3 and at rate of 90 percent for year 4.

After year 4, the company should grow at a constant annual rate of 9 percent for ever. Assume required return of 12 percent and market equilibrium.

Group of answer choices

$106.31

$67.56

$114.67

$73.62