Question: Crane Corp. is a fast-growing company whose management expects it to grow at a rate of 21 percent over the next two years and then
Crane Corp. is a fast-growing company whose management expects it to grow at a rate of 21 percent over the next two years and then to slow to a growth rate of 13 percent for the following three years. If the last dividend paid by the company was $2.15.
A) What is the dividend for the 1st year? (Round answer to 3 decimal places, e.g. 15.250.) D1 $__________________enter a dollar amount of the dividend for the first year rounded to 3 decimal places
B) What is the dividend for the 2nd year? (Round answer to 3 decimal places, e.g. 15.250.) D2 $__________________enter a dollar amount of the dividend for the second year rounded to 3 decimal places
C) What is the dividend for the 3rd year? (Round answer to 3 decimal places, e.g. 15.250.) D3 $_________________enter a dollar amount of the dividend for the third year rounded to 3 decimal places
D) What is the dividend for the 4th year? (Round answer to 3 decimal places, e.g. 15.250.) D4 $_________________enter a dollar amount of the dividend for the fourth year rounded to 3 decimal places
E) What is the dividend for the 5th year? (Round answer to 3 decimal places, e.g. 15.250.) D5 $________________enter a dollar amount of the dividend for the fifth year rounded to 3 decimal places
F) Compute the present value of these dividends if the required rate of return is 14 percent. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) Present value $________________ enter the present value of these dividends rounded to 2 decimal places
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