at 3 years. If you buy the stock, you plan to hald it for 3 years and then sell it. The appropriate discount rate is 10%. a. Find the expected dividend for each of the next 3 years; that is, calculate D1,D2, and D3. Note that D0=$3.50. Do not round intermediate calculations. Round your answers to the nearest cent. D2=5D2=$D3=5 b. Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stresm; that is, calculate the PVs of D4,D2, and D2, and then sum these PVs. Do not round intermediate calculations. Round your answer to the nearest cent. 5 c. You expect the price of the stock 3 years from now to be $238.09; that is, you expect P^3 to equal $238.09. Discounted at a 10% rate, what is the present value of this expected future stock price? in other words, calculate the PV of $238.09. Do not round intermediate calculations. Round your answer to the nearest cent. d. If you plan to buy the stock, hold it for 3 vears, and then sell it for $238.09, what is the most you should poy for it today? Do not round intermediate caiculations. Round vour answer to the nearest cont. 5 e. Use equation below to calculate the present valie of this stock. Assume that g=8% and that it is constant. Do not round intermediate calculations, Round your answer to the nearest cent. 1. 1 f. Is the value of this stock dependent upon how long you plan to hold a? in other words, if your planned holding period was 2 years or 5 yeans rather than 3 years, would this affect the value of the stock today, P^0 ? 1. Yes. The valuen of the stock is dependent upon the holding period due to the fact that the value is determined as the present value of all future expected dividends: II. No. The value of the stock is not dependent upon the holding period unless the arowth rate remuins constant for the foreseeable future. III. Yes. The value or the stock is dependent upon the holding period as long as the growth rate remains constant for the foresceable future. IV, No. The value of the stock is not dependent upon the holding period. The value calculated in parts a through a is the value for a 3 year holding period, It is equal to the value calculated in part e. Any other holding period would produce the same value of P0