a. Use the following to answer questions 14 through 17. The company, Global Business Machines (GBM) Inc., expects dividends to grow over the next three years (years t=1 through t=3) at a rate of 9 percent per year. After year three, dividends are expected to grow at a constant rate of 5 percent per year forever. The last dividend that GBM paid was $1.50 (at t-0). The required rate of return (rs) is 7%. 14. What are the expected dividends in years 1 through 3 (D1, D2 and D3) 2 1.50, 2.00, 2.05 b. 1.64, 1.78, 1.94 1.64, 1.94, 2.24 d. 1.50, 2.40, 3.30 e. 2.07, 2.14, 2.21 15. What is the expected dividend in year 4 (D4)? 1.50 b. 2.04 2.42 d. B.06 3.19 c. a. C. e. 16. What is P3? a. $59.10 b. $71.00 c. $88.75 d. $102.00 e. $115.75 17. What is the price of the stock today (Po)? a. $12.79 b. $37.21 $50.00 d. $71.03 e. $87.92 CLEOCUS