Bing Bang Company paia a $$3$ dividend last year. The dividend is expected to grow at a constant rate of $7$ percent over the next four years. Thereafter, eamings are expected to grow indefinitely of $25.$ The required rate of retum is $14$ percent.

$**$Round all values to three places to the right of the decimal point where appropriate

Compute the anticipated value of the dividends for year $1,$ that is compute D$1$

Compute the anticipated value of the dividends for year $2.$ that is compute D$2$

Compute the anticipated value of the dividends for year $3$ that is compute D$3$

Compute the anticipated value of the dividends for year & that is compute D$4$

Discount each of these dividends back to the present and then sum them

Compute the price of the stock of the end of the fourth year $($P$4)$

Compute the anticipated value of the dividends for year $3,$ that is$,$ compute D$\_\{3\}$

Compute the anticipated value of the dividends for year $4,$ that is; computeD$\_\{4\}$

Discount each of these dividends back to the present and then sum them.

Compute the price of the stock at the end of the fourth year $($P$\_\{4\})$

Discount P$\_\{4\}$ back to the present.

What is the present value of the stock?

In regard to the stock price in part $8,$ indicate which direction it would move if D$\_\{1\}$ increases. Write $1,2,$ or $3$ in the answer box if you expect an increase.decrease, or no change in the stock price, respectively.

In regard to the stock price in part $8,$ indicate which direction it would move if the required rate of return increases. Write $1\mathrm{.}2$ or $3$ in the answer box if youexpect an increase, decrease, or no change in the stock price, respectively.