ebook Your broker offers to sell you some shares of Barn & Co. common stock that pada direidend of $2,50 yesterday Bahnsen's dividend is expected to grow operear for the ned i buy the stock, you plan to hold it for 3 years and then it. The propriate discount rate 10% . Find the expected dividend for each of the next years that is calculate Di. Da, and Ds. Note that $2.50. Do not round intermediate calculations. Houd to the westen D-$ Das Dy$ 2.619 2.86 3.06 b. Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream that is calculate the PMs of Di. Da, and D. and then some Intermediate calculations. Round your answer to the nearest cont. 7.10 not round e. You expect the price of the stock 3 years from now to be $109.23, that is you expect to equal $102.23. Discounted at a 10 rate, what is the present value of this expected future stock pra? In other words, calculate the PV of $109.23. Do not round intermediate calculations, Round your annar to the nearest cont. d. If you plan to buy the stock hold it for 3 years and then selt for $109.23, what is the most you should pay for today? Do not round intermediate closetor. Hound your ever there cent. 5 e. Use equation below to calculate the present value of the stock. D ** Assume that and that it is constant. Do not round intermediate calculations Pound your arawer to the nearest cent. 3 f. Is the value of this stock dependent upon how long you plan to hold in other your planned holding periodas 2 years or 5 years rather than and the Whect the was the stock today, P2 1. Yes. The value of the stock it dependent upon the holding period due to the fact that the value a determined the present value of a future espected IL No. The value of the stock is not dependent upon the holding period unless the growth at maine constant for the foreseeable future. 11. Yes. The value of the stocks dependent upon the holding period long as the growth rate remains constant for the forestable future 14. No. The value of the stock is not dependent upon the holding red. They also in thround the other 1:41 A DENG 11/12 d. If you plan to buy the stock, hold it for years, and then sell for $109.23, what is the most you should pay for it today? Dentround immediate calcations. Round your to the nearest Q Usewquation below to calculate the present value of this stock 2. . Assume that g - 796 and that it is constant. Do not round intermediate calculations. Hound your awer to the nearest cont. f. Is the value of this stock dependent upon how long you plan to hold in other words, your planned holding period was 2 years or 5 years rather than 3 years, would this affect the value of the stock today 1. Yes. The value 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. M. The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the formeabile future. Yes. The value of the stock is dependent upon the holding period as long as the growth rate remains constant for the foreseeable future. IM. M. The value of the stock is not dependent upon the holding period. The value calculated in parts through the value for a year holding period. It is equal to the value calculated in parte Any other holding period would produce the same value of Po. V. Yes. The value of the stock is dependent upon the holding period. The value calculated in partea through is the value for a year holding period. It is not equal to the value calculated in parte Any other holding period would produce a different value of Pa