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5. (5.0 pts) For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Hint: The non-constant

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5. (5.0 pts) For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Hint: The non-constant forecasted growth period is 5 years. So, the dividend in 2017 is the year T+I projected dividend, i.e., you will need to discount the Continuing Value of Dividends for 5 years to arrive back at the value at the beginning of year 2012 (end of 2011). Also, even though we discussed that DT+1DT (1 + g), for this problem, that's exactly how you should compute it for simplicity as we have no other forecasted information. (Amounts in thousands) Forecast of Long-Run Cost of Dividend in Growth Capital Scenario A Scenario B Scenario C year 2016 Forecast $28 $54 4% 9% 5% 11% 15% 14% $123

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