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In doing a five-year analysis of future dividerids, the Dawson Corporation is considering the following two plans. The values represent dividends per share. Use Appendix

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In doing a five-year analysis of future dividerids, the Dawson Corporation is considering the following two plans. The values represent dividends per share. Use Appendix t for an approximate answer but calculate your final answer using the formula and financia! caiculator methods. a. How much in fotal dividends per share will be paid under each plan over five years? (Do not round intermediate caleulations and round your answers to 2 decimal places.) b-1. Mr. Eright, the Vice-President of Finance, suggests that stockhoiders 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 10 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.)

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