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Asume there anstre companies that in the past year paiday the same annual dividend of $3:17 a share. In addition, the future annual rate of

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Asume there anstre companies that in the past year paiday the same annual dividend of $3:17 a share. In addition, the future annual rate of growth individends for each in the three companies has been estimated as follows ? Atats the free from the recompen have the same required rate of metum 11%) Une e come achofthesome Comment rely on the value is What is the major cause of the differences among the three auto? For com. All the water company.com (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Buggies Are Us Steady Freddie, Inc Gang Buster Group g=0 Year 1 $3.65 (ie., dividends (for the Year 2 $4.20 are expected foreseeable Year 3 $4.82 to remain at future) Year 4 $5.57 $3.17/share) Year 5 $6.39 Year 6 and beyond: g -8% g=8% Assume there are three companies that in the past year paid exactly the same annual dividend of $3.17 a share. In addition, the future annual rate of growth in dividends for each of the three companies has been estimated as follows: Assume also that as the result of a strange set of circumstances, these three companies all have the same required rate of retum (r= 11%). a. Use the appropriate DVM to value each of these companies. b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among these three valuations? a. For Buggies Aro-Us, the value of the company's common shares is $(Round to the nearest cont.) - X Data table 9-8 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Buggies Are Us Steady Freddie, Inc Gang Buster Group 90 Year 1 $3.65 (le, dividends (for the Year 2 $420 are expected foreseeable Year 3 $482 to remain at future) Year 4 $5 57 53. 17/share) Year 5 $6.39 Year 6 and beyond: g = 8% Help me solve this Check

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