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The following graph shows the value of a steck's dividends over time, The stocks current dividend is $1.00 per share, and dividends are expected to

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The following graph shows the value of a steck's dividends over time, The stocks current dividend is $1.00 per share, and dividends are expected to orow at a constant rate of 3.50% per veac, The intrinsic value of a stock should equal the sum of the present value ( PV ) of all of the dividends that a stock is supeosed to pay in the future, but many people find it siticult to imagine adding up an infinite number of dividends. Calculate the present value ( F ) of the dividend said todar (D) and the discounted value of the dhidends expected to be pold 10 , 20 , and 50 years from now (Di,D30,Dm), Assume that the stocks required return (fk) is 10.40%. Note: Carry and tound the calcisations to four decinal places. Using the orange curve (square symbels), plat the prosent value of each of the expected fueure ividends for years 10, 20, and so. The reaiting curve Note: flound each of the discounted values of the ifvidends to be nestrot tenth decimal place before plotting it on the oraph, rou can mouse orer the points in the graph to see their coordinates. Using the oranoe curve (toquare symbolb), plot the present value of each of the expected future dividends for years 10,20 , and 50 . The resulting curve will Wustrate how the WV of a particular dividend parment wat decroaso dependiey on low far from toder the dividend is expected to be recelved. Nete: Round each of the discounted values of the dividendt to the nearest temh decimal place before plocting it on the graph. You can mouce over the points in the gaph to see their coordinates

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