Compute the anticipated value of the dividends

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Reference no: EM133168400

Question - Hunter Petroleum Corporation paid a $2 dividend last year. The dividend is expected to grow at a constant rate of 5 percent forever. The required rate of return is 12 percent (this will also serve as the discount rate in this problem).

Required -

a. Compute the anticipated value of the dividends for the next three years.

b. Calculate the present value of each of the anticipated dividends at a discount rate of 12 percent.

Reference no: EM133168400

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