You are considering the purchase of Wahoo Limited.The firm just paid a dividend of $4.20 per share.The shares are selling for $115 per share.Security analysts agree with top management in projecting steady growth of 12% in dividends and earnings over the foreseeable future.Your required rate of return for shares of this type is 17.5%.If you were to purchase and hold the shares for three years, what would the expected dividends be worth today?

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The Answer of You are considering the purchase of Wahoo Limited.The firm just paid a dividend of $4.20 per share.The shares are selling for $115 per share.Security analysts agree with top management in projecting steady growth of 12% in dividends and earnings over the foreseeable future.Your required rate of return for shares of this type is 17.5%.If you were to purchase and hold the shares for three years, what would the expected dividends be worth today?

You Are Considering the Purchase of Wahoo Limited