Ivanhoe Corp. is a fast-growing company whose management expects it to grow at a rate of 23 percent over the next two years and then to slow to a growth rate of 17 percent for the following three years. If the last dividend paid by the company was $2.15, what is the dividend for year 1-5?

Solved:

1: 2.645

2: 3.253

3: 3.806

4: 4.453

5: 5.21

Need answered: 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.)