Question 2 (3 marks)

A six-year analysis of Cersei Company and Daenerys Company showed the following dividends per share:

Year	Cersei Company	Daenerys Company
2013	$3.86	$2.00
2014	$2.90	$6.00
2015	$4.20	$3.50
2016	$5.60	$4.38
2017	$3.30	$3.92
2018	$5.25	$6.54

Part A

What is the Present Value of the dividends for each company?

Part B

Assume a 6% discount rate is used for Cersei Company and 12% for Daenerys Company.

Part C

Which would you choose to invest in based on this analysis?