Question: In doing a five-year analysis of future dividends, the Dawson Corporation is considering the following two plans. The values represent dividends per share.
![12_Plan.png](https://secure.tutorsglobe.com/CMSImages/12_Plan.png)
a. How much in total dividends per share will be paid under each plan over the five years?
b. Mr. Bright, the vice-president of finance, suggests that stockholders often prefer a stable dividend policy to a highly variable one. He will assume that stockholders apply a lower discount rate to dividends that are stable. The discount rate to be used for Plan A is 10 percent; the discount rate for plan B is 12 percent. Which plan will provide the higher present value for the future dividends? (Round to two places to the right of the decimal point.)