PV of dividends: TechWorld Ltd is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?
A) $10.75
B) $9.80
C) $11.88
D) $11.50

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The Answer of PV of dividends: TechWorld Ltd is expecting to pay out a dividend of $2.50 next year. After that it expects its dividend to grow at 7 percent for the next four years. What is the present value of dividends over the next five-year period if the required rate of return is 10 percent?
A) $10.75
B) $9.80
C) $11.88
D) $11.50

PV of Dividends: TechWorld Ltd Is Expecting to Pay Out