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5. John Denver Corporation (JDC) is expected to pay annual dividends of $1.2,$1.44, and $4.00 over the next three years. After 3 years, the dividend

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5. John Denver Corporation (JDC) is expected to pay annual dividends of $1.2,$1.44, and $4.00 over the next three years. After 3 years, the dividend is expected to grow at a constant rate of 10% per year indefinitely. Stockholders require a return of 20% to invest in JDC. (a) Compute the (total) present value of the next three annual dividends, (b) For what price, should investors expect to sell the stock of JDC at the end of Year 3 ? (c) Compute the intrinsic or fair value of JDC's stock

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