1. Weston Corporation just paid a dividend of $3.25 a share (i.e., D0 = $3.25). The dividend is expected to grow 9% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places.
D1 = $
D2 = $
D3 = $
D4 = $
D5 = $
2. Over the life of a firm, the capital invested in the firm by the shareholders plus the income of the firm will reflect:
the dividend paying ability of the firm.
the value of the firm to shareholders.
the free cash flows available to shareholders.
the value of the firm for debt holders and shareholders.