Neep the Highest: 78 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 4. Expected dividends as a basis for stock values The following graph shows the value of a stock's dividends over time. The stock's current dividend is $1.00 per share, and dividends are expected to grow at a constant rate of 3.50% per year. The intrinsic value of a stock should equal the sum of the present value (PV) of all of the dividends that a stock is supposed to pay in the future, but many people find it difficult to imagine adding up an infinite number of dividends. Calculate the present value (PV) of the dividend paid today (Do) and the discounted value of the dividends expected to be paid 10 and 20 years from now (Dio and D20). Assume that the stock's required return (r) is 10.40%. Note: Carry and rund the calculations to four decimal places. Time Period Dividend's Expected Expected Dividend's Now End of Year 10 End of Year 20 End of Year 50 the orange curve (square symbols), plot the present value of each of the expected future dividends for years and 50. The resulting curve will llustrate how the PV of a particular dividend payment will decrease ding on how for from today the dividend is expected to be received Type here to search