Question: Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Buggies-Are-Us Steady Freddie, Inc


Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Buggies-Are-Us Steady Freddie, Inc g=0 g= 8% (for the (i.e., dividends are expected to remain at $1.98/share) foreseeable future) Gang Buster Group Year 1 $2.28 Year 2 $2.62 Year 3 $3.00 Year 4 $3.47 Year 5 $3.98 Year 6 and beyond: g = 8% Assume there are three companies that in the past year paid exactly the same annual dividend of $1.98 a share. In addition, the future annual rate of growth in dividends for each of the three companies has been estimated as follows: Assume also that as the result of a strange set of circumstances, these three companies all have the same required rate of return (r= 15%). a. Use the appropriate DVM to value each of these companies. b. Comment briefly on the comparative values of these three companies. What is the major cause of the differences among these three valuations
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