Carnival Corp. (CCL) provides cruises to major vacation destinations. Carnival operates 99 cruise ships in North America, Europe, Australia, and Asia. The company also operates hotels, sightseeing motor coaches and rail cars, and luxury day boats. These activities generated earnings per share of $2.69 for 2015. The stock price at the end of 2015 was $54.48. The previous stock prices and dividends are shown in the following table.

(1) Determine the dividends to year 5 using the same growth rate at which the dividends had been growing the last 3 years and then use a terminal P/E ratio of 20.26 to compute the future price. Then find the PV of these cash flows. So first, determine the historical dividend growth rate.

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2008 2009 2010 2011 2012 2013 2014 2015 $ 1.20 $ 0.00 $ 0.40 $1.00 $1.00 $1.50 $1.00 $1.10 Stock price at the end of the year $20.77 $27.06 $39.81 $28.97 $34.07 $38.29 $44.31 $54.48 Annual dividend