Beasley Ball Bearings paid a $$4$ dividend last year. The dividend is expected to grow at a constant rate of $5$ percent over the next four years. The required rate of return is $16$ percent $($this will also serve as the discount rate in this problem$).$ Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$.$ Compute the anticipated value of the dividends for the next four years.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.

$\backslash$table$[[,$Anticipated Value$],[$D$1,],[$D$2,],[$D$3,],[$D$4,]]$

b$.$ Calculate the present value of each of the anticipated dividends at a discount rate of $16$ percent. Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.

$\backslash$table$[[,$PV of Dividends$],[$D$1,],[$D$2,],[$D$3,],[$D$4,],[$Total$,]]$

c$.$ Compute the price of the stock at the end of the fourth year $(P_4).$

Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Stock price at Year $4$

d$.$ Calculate the present value of the year $4$ stock price at a discount rate of $16$ percent.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Present value of Year $4$ stock price

e$.$ Compute the current value of the stock.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Current value

f$.$ Use the formula given below to show that it will provide approximately the same answer as part $e.$ Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

$P_0=\frac{D_1}{K_e-g}$

Current value

g$.$ If current EPS were equal to $$5\mathrm{.}51$ and the P$/$E ratio is $1$:$2$ times higher than the industry average of $6,$ what would the stock price be$?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Stock price

h$.$ By what dollar amount is the stock price in part $g$ different from, the stock price in part $f?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

i$.$ With regard to the stock price in part $f,$ indicate which direction it would move if:

$\backslash$table$[[(1)D1$ increases,$],[(2)$ Ke increases,$],[(3)g$ increases,$]]$