{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T15:13:56-04:00", "answer_date": "2024-06-06 15:13:56", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2374170", "url": "\/study-help\/questions\/please-answer-with-explanations-including-dropdown-menu-questions-all-information-2374170", "question_creation_date_js": "2024-06-06T15:13:56-04:00", "question_creation_date": "Jun 06, 2024 03:13 PM", "meta_title": "[Solved] Please answer with explanations including | SolutionInn", "meta_description": "Answer of - Please answer with explanations including dropdown menu questions. All information needed is below. 2. Expected divide | SolutionInn", "meta_keywords": "answer,explanations,dropdown,menu,questions,information,needed,below,2,expected,dividends,basis", "question_title_h1": "Please answer with explanations including dropdown menu questions. All information needed is below. 2. Expected dividends as a basis for stock values The following graph", "question_title": "Please answer with explanations including dropdown menu questions. All information needed is", "question_title_for_js_snippet": "Please answer with explanations including dropdown menu questions All information needed is below 2 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 4 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 (D10 and D20) Assume that the stock's required return (rs) is 5 40 Note Carry and round the calculations to four decimal places Time Period Dividend's Expected Expected Dividend's Future Value Present Value Now End of Year 10 End of Year 20 End of Year 50 Using the blue curve (circle symbols), plot the future value of each of the expected future dividends for years 10, 20, and 50 The resulting curve will illustrate how the FV of a particular dividend payment will increase depending on how far from today the dividend is expected to be received Note Round each of the discounted values of the of dividends to the nearest tenth decimal place before plotting it on the graph You can mouse over the points in the graph to see their coordinates DIVIDENDS $1 10 00 Expected Dividends FV of Dividends PV of Dividends 20 30 1 0 50 60", "question_description": "\"image\"image

Please answer with explanations including dropdown menu questions. All information needed is below. <\/p>

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\"image\"image<\/div><\/div><\/div> 2. 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 4.50% 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 (D10 and D20). Assume that the stock's required return (rs) is 5.40%. Note: Carry and round the calculations to four decimal places. Time Period Dividend's Expected Expected Dividend's Future Value Present Value Now End of Year 10 End of Year 20 End of Year 50 Using the blue curve (circle symbols), plot the future value of each of the expected future dividends for years 10, 20, and 50. The resulting curve will illustrate how the FV of a particular dividend payment will increase depending on how far from today the dividend is expected to be received. Note: Round each of the discounted values of the of dividends to the nearest tenth decimal place before plotting it on the graph. You can mouse over the points in the graph to see their coordinates. DIVIDENDS [$1 10.00 Expected Dividends . FV of Dividends PV of Dividends 20 30 1.0 50 60", "transcribed_text": "", "related_book": { "title": "Financial Accounting An Introduction to Concepts, Methods and Uses", "isbn": "978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023", "edition": "14th edition", "authors": "Roman L. Weil, Katherine Schipper, Jennifer Francis", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/282.jpg", "uri": "\/textbooks\/financial-accounting-an-introduction-to-concepts-methods-and-uses-14th-edition-282", "see_more_uri": "" }, "free_related_book": { "isbn": "B0CYYYC4BT", "uri": "\/textbooks\/rise-to-the-top-the-essential-guide-for-multi-unit-restaurant-managers-overcoming-challenges-seizing-opportunities-and-thriving-in-the-hospitality-industry-1st-edition-979-8884837751-354649", "name": "Rise To The Top The Essential Guide For Multi Unit Restaurant Managers Overcoming Challenges Seizing Opportunities And Thriving In The Hospitality Industry", "edition": "1st Edition" }, "question_posted": "2024-06-06 15:13:56", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/you-have-a-portfolio-with-an-asset-allocation-of-35", "description": "You have a portfolio with an asset allocation of 35 percent stocks, 55 percent long-term Treasury bonds, and 10 percent T-bills. 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