FIN 310 Chapter 16 Open-Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. A company is considering the following two dividend policies for the next five years. Year Policy #1 Policy #2 1 4.00 6.90 2 4.00 2.40 3 4.00 5.00 4 4.00 1.70 5 4.00 4.00 Required: A. What is the total of the dividends per share that the stockholders will receive over the full five year period? B. If investors see no difference in the risk between the two policies, and therefore apply a 9.4% discount rate to both policies, what is the present value of each dividend stream? C. Suppose investors see Policy #2 as the riskier of the two, and they therefore apply a 9.4% discount rate to Policy #1 and a 12% discount rate to Policy #2. Under this scenario, what is the present value of each dividend stream? D. What conclusions can be drawn from this exercise