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hapter 18 HW ! You skipped this question in the previous attempt Problem 18-9 Policy on payout ratio [LO18-1) 14 In doing a five-year analysis
hapter 18 HW ! You skipped this question in the previous attempt Problem 18-9 Policy on payout ratio [LO18-1) 14 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 Plan A $1.00 1.00 Plan B $e.le 1.20 Book 4.00 Print a. 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 B 5.1. Mr. Bright, the Vice-President of Finance, suggests that stockholders often prefer a stable dividend policy to a highly variable one He will assume that stockholders apply a lower discount rate to dividends that are stable. The discount rate to be used for Plan A is percent the discount rate for Plan B is 14 percent. Compute the present value of future dividends. (Do not round Intermediate 18 HW You skipped this question in the previous attempt. Plan A Plan B b-1. Mr. Bright, the Vice-President of Finance, suggests that stockholders often prefer a stable dividend policy to a highly variable one He will assume that stockholders apply a lower discount rate to dividends that are stable. The discount rate to be used for Plan A is 9 percent, the discount rate for Plan B is 14 percent. Compute the present value of future dividends. (Do not round intermediate calculations and round your answers to 2 decimal places.) Present Value of Future Dividends Plan A Plan B b-2. Which plan will provide the higher present value for the future dividends? Plan A Plan B
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