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What is the present value of its forecasted dividends

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Reference no: EM133093152

Question - Powder-maker Corporation's current total dividend payments (annual dividend payments plus stock buy-backs) is $13,089 (in millions) and is expected to grow by 5% for the next 5 years. Hence its projected dividends are:

Year+1

Year+2

Year+3

Year+4

Year+5

$13,743

$14,431

$15,152

$15,910

$16,705

If Powdermaker's expected rate of return is 7%, what is the present value of its forecasted dividends?

A. $54,246

B. $61,859

C. $66,324

D. $74,243

Reference no: EM133093152

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