For Each of the Following Scenarios Determine the Value as of the Beginning

question 14

Essay

For each of the following scenarios determine the value as of the beginning of 2012 of the continuing dividend:
$\begin{array}{l}\begin{array} { c c r c c } & \begin{array} { c } \text { Forecast of } \\\text { Divilent in } \\\text { year } 2016\end{array} & \begin{array} { c } \text { Long-Run } \\\text { Grawth } \\\text { Forecast }\end{array} & \begin{array} { c } \text { Cost af } \\\text { Capital }\end{array} \\\hline \text { Scenaria A } & \$ 28 & 4\% & 11 \% \\\text { Scenario B } & \$ 54 & 9 \% & 15 \% \\\text { Scenario C } & \$ 123 & 5 \% & 14 \% \\\end{array}\\\text { (Amounts in thousands) }\end{array}$

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Definitions:

Invoice

A document detailing a transaction between a buyer and seller, including the quantity, price, and terms of sale.

Cash Discount

A deduction from the invoice price offered by a seller to encourage prompt payment by the buyer.

Payment Terms

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.

Invoice

A document issued by a seller to a buyer indicating the products or services provided, their quantities, and the agreed prices for products or services the seller has provided but not yet been paid for.