Compute the present value of these dividends

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Question - Pharoah Corp. is a fast-growing company whose management expects it to grow at a rate of 25 percent over the next two years and then to slow to a growth rate of 19 percent for the following three years. If the last dividend paid by the company was $2.15.

What is the dividend for the 1st year?

What is the dividend for the 2nd year?

What is the dividend for the 3rd year?

What is the dividend for the 4th year?

What is the dividend for the 5th year?

Compute the present value of these dividends if the required rate of return is 14 percent.

Reference no: EM133011692

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