Compute the present value of these dividends

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Question - Colombia Corp. is a fast-growing company that expects to grow at a rate of 25 percent over the next two years and then slow down to a growth rate of 15 percent for the following three years. If the last dividend paid by the company was $2.00, estimate the dividends for the next five years. Compute the present value of these dividends if the required rate of return was 15 percent.

Reference no: EM133169322

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