Cheers Beverages Limited paid a $ 5 dividend last year. The dividend is expected to grow at
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Cheers Beverages Limited paid a $ dividend last year. The dividend is expected to grow at a constant rate of percent forever. The required rate of return is percent this will also serve as the discount rate in this problemUse Excel to arrive at the answers. a Compute the anticipated value of the dividends for the next three years. Do not round intermediate calculations. Round the final answer to decimal places. Anticipated value D$ D$ D$ b Calculate the present value of each of the anticipated dividends at a discount rate of percent. Do not round intermediate calculations. Round the final answers to decimal places. PV ofdividends D$ D D Total$ c Compute the price of the stock at the end of the third year PDo not round intermediate calculations. Round the final answer to decimal places. PDKe g D is equal to D times Price of the stock $ d Calculate the present value of the year stock price at a discount rate of percent. Do not round intermediate calculations. Round the final answer to decimal places. Price of the stock discounted $ e Compute the current value of the stock. Do not round intermediate calculations. Round the final answer to decimal places. Current value $ f Use formula given below to show that it will provide approximately the same answer as part eDo not round intermediate calculations. Round the final answer to decimal places. PDKe g For formula use D $ Ke percent, and g percent. The slight difference between the answers to parts e and f is due to rounding. Current value $
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