Assume the e re r e c mpan that in the pa t ear pa exact the same annual di den o on the top-right corner of the date table below in order to copy its contents into a spreadsheet.) 5 a share n addition the u ure annua rate o gro thin di de or each of the three compan s has been estimated as ws Click on he n k a Buggies Are Us Steady Freddie, In Cang Buster Croup 6% $2.9 Year 2 e, ddends are expected to remain at $2.59share) 3.25 3.67 1.13 tor the toreseeable tuture) b and Assume also that as the resuit ot a strange set of circumstances. these three companies all have the same required rate of return r-11%) a. Use the appropriate DVM to alue each of these companies b. Cont bricly n the comparalive values ofhcsc the companic Whal iajor causc o the dilferences anong these thce valuations? a. For Buggies Are Us, the value of the company's common shares is S For Steady Freddie, Inc., the value of the company's common shars is SRound to the nearest cent. For Gang Buster Group, the value of the company's common shares is (Round to the nearest cent) b. Coment briefly on the comparative values of these three companies. What is the major cause of the differences among these three valuations? (Select the best choice below.) Round to the nearest cent.) The value o Buggies Are Us Is S23.45 compared to S54 60 result ng m he owest value. The dividends o Steady Fred e, ric grow a constant rate o 6% rever, whereas Gang Bus rs Group's d vidends grow at a proximately 2 The higher growth in dividends in the earier years causes the stock of Cang Busters Croup to be worth more than Steady Freddie, Inc., stock. The value of Buggies Are Us IS $23.45, compared to $54.00 or result ng n he lovves vaue. The dividends of S ady Fred e, Inc. ro al U nslan ra 16% rGV whereas Gang Dust s G' uug s drvn ends g' ow al ape o rnalery 12% or h ne hagher growtn in dividends in the earier years causes the stack ang Husters Group to be wartn more than the Sieady Freddie, Inc., stork A Stedyreddie Inc and $68.37 or Gang Busters Croup. The difference n values s caused by the difference in dr dend growth ates. The Buggies Are Us dividends do not grow for the rs our years and 11 % ro m ar ve to he or seeable ture. B. edy Freddie, Inc., and $68.37 for Gang Busters Group. The difference n values is caused by the difference in dividend growth ates. The Buggies Are Us dvidends do not grow 'sl ou' y ars an 5 rom yua' ve o lhe reseeabl lure