question archive A six year(2015 -2020) analysis of Cersei and Daenerys showed the following dividends per share: Cersei: $3
A six year(2015 -2020) analysis of Cersei and Daenerys showed the following dividends per share: Cersei: $3
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A six year(2015 -2020) analysis of Cersei and Daenerys showed the following dividends per share:
Cersei: $3.86, 3.90, 4.40, 3.80, 3.60 and 3.75
Daenerys: $2.00, 6.00, 3.50, 4.38, 3.92, 9.60
Assume a discount rate of 6% for Cersei and 12% for Daenerys.
What is the present value of the dividends for Cersei? Round to 2 decimal places.
What is the present value of the dividends for Daenerys? Round to 2 decimal places.
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Present value of Dividends for Cersei = $19.15
Present value of dividends for Daernerys = $18.93
Step-by-step explanation
Discount rate for Cersei = 6% = 0.06
Present value of Dividends for Cersei = $3.86/1.06 + $3.90/1.062 + $4.40/1.063 + $3.80/1.064 + $3.60/1.065 + $3.75/1.066 = $19.15
Discount rate for Daernerys = 12% = 0.12
Present value of dividends for Daernerys = $2/1.12 + $6/1.122 + $3.5/1.123 + $4.38/1.124 + $3.92/1.125 + $9.60/1.126 = $18.93
