Question: 25. value 4.00 points In doing a five-year analysis of future dividends, the Dawson Corporation is considering the following two plans. The values represent dividends

25. value 4.00 points In doing a five-year analysis of future dividends, the Dawson Corporation is considering the following two plans. The values represent dividends per share. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. Year NM Plan A $ 1.40 1.40 1.40 1.90 1.90 Plan B $ 40 2.10 40 4.00 1.50 a. How much in total dividends per share will be paid under each plan over five years? (Do not round intermediate calculations and round your answers to 2 decimal places.) Total Dividends Plan A Plan B b-1. Mr. Bright, the vice president of finance, suggests that stockholders often prefer a stable dividend policy to a highly variable one. He will assume that stockholders apply a lower discount rate to dividends that are stable. The discount rate to be used for Plan A is 9 percent; the discount rate for Plan B is 13 percent. Compute the present value of future dividends. (Do not round intermediate calculations and round your answers to 2 decimal places.) Present Value of Future Dividends Plan A Plan B b-2. Which plan will provide the higher present value for the future dividends? Plan A Plan B O
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