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Assume there are three companies that in the past year paidexactly the same annual dividend of $1.28 a share. In addition, thefuture annual rate of growth in dividends for each of the threecompanies has been estimated as follows: SEE TABLE. Assume alsothat as the result of a strange set of circumstances, these threecompanies all have the same required rate of return (r=12).Buggies-Are-UsSteady Freddie, IncGang BusterGroupg =0g =8%Year1$1.44(i.e.dividendsare expectedto remain at$1.28/share(fortheforeseeablefuture)2$1.623$1.824$2.05Year 5and beyond:g = 8%a. Use the appropriate DVM to value each ofthese companies.b. Comment briefly on the comparative values ofthese three companies. What is the major cause of the differencesamong these three valuations?For Buggies-Are-Us, the value of the company's common shares is_______ (Round to the nearest cent.)For Steady Freddie, Inc., the value of the company's commonshares is ______(Round to the nearest cent.)For Gang Buster Group, the value of the company's common sharesis _______ (Round to the nearest cent.)