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Constant growth Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.25 yesterday. Bahnsen's dividend

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Constant growth Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.25 yesterday. Bahnsen's dividend is expected to grow at 8% per year for the next 3 years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 9%. Find the expected dividend for each of the next 3 years; that is calculate D_1, D_2 and D_3 Note that D_0 = $3.25. Round your answer to the nearest cent. D_1 = D_2 = D_3 = Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream: that is, calculate the PVs of D_1 D_2 and D_3 and then sum these PVs. Round your answer to the nearest cent. Do not round your intermediate calculations. $ You expect the price of the stock 3 years from now be $442.16; that is, you expect P^_3 to equal $442.16. Discounted at a 9% rate what is the present value of this expected future stock price? In other words, calculate the PV of s442.16. Round your answer to the nearest cent. Do not round your intermediate calculations

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