5. (5.0 pts) For each of the following scenarios determine the value as of the beginning...

 

Transcribed Image Text:

5. (5.0 pts) For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Hint: The non-constant forecasted growth period is 5 years. So, the dividend in 2017 is the year T+1 projected dividend, i.e.. you will need to discount the Continuing Value of Dividends for 5 years to arrive back at the value at the beginning of year 2012 (end of 2011). Also, even though we discussed that DT+1 Dy X (1+g), for this problem, that's exactly how you should compute it for simplicity as we have no other forecasted information. (Amounts in thousands) Scenario A Scenario B Scenario C Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast $28 $54 $123 4% 9% 5% 11% 15% 14% 5. (5.0 pts) For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend: Hint: The non-constant forecasted growth period is 5 years. So, the dividend in 2017 is the year T+1 projected dividend, i.e.. you will need to discount the Continuing Value of Dividends for 5 years to arrive back at the value at the beginning of year 2012 (end of 2011). Also, even though we discussed that DT+1 Dy X (1+g), for this problem, that's exactly how you should compute it for simplicity as we have no other forecasted information. (Amounts in thousands) Scenario A Scenario B Scenario C Forecast of Long-Run Cost of Dividend in Growth Capital year 2016 Forecast $28 $54 $123 4% 9% 5% 11% 15% 14%

Answer rating: 100% (QA)

So the values of the continuing dividend at the beginning of 2... View the full answer