Reference no: EM132917506

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.

Question 1: What is the dividend for the 1st year?

Question 2: What is the dividend for the 2nd year? (Round answer to 3 decimal places, e.g. 15.250.)

Question 3: What is the dividend for the 3rd year? (Round answer to 3 decimal places, e.g. 15.250.)

Question 4: What is the dividend for the 4th year? (Round answer to 3 decimal places, e.g. 15.250.)

Question 5: What is the dividend for the 5th year? (Round answer to 3 decimal places, e.g. 15.250.)

Question 6: 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.)