Expected dividends as a basis for stock values

The following graph shows the value of a stock's dividends over time. The stock's current dividend is $$1\mathrm{.}00$ per share, and dividends are expected to

grow at a constant rate of $4\mathrm{.}50\%$ per year. The intrinsic value of a stock should equal the sum of the present value $($PV$)$ of all of the dividends that a

stock is supposed to pay in the future, but many people find it difficult to imagine adding up an infinite number of dividends.

Calculate the present value $($PV$)$ of the dividend paid today $(D_0)$ and the discounted value of the dividends expected to be paid $10$ and $20$ years from

now and $\{$:$D_{20}).$ Assume that the stock's required return $(r_s)$ is $5\mathrm{.}40\%.$

Note: Carry and round the calculations to four decimal places.

Using the blue curve $($circle symbols$),$ plot the future value of each of the expected future dividends for years $10,20,$ and $50.$ The resulting curve will

illustrate how the FV of a particular dividend payment will increase depending on how far from today the dividend is expected to be received.

Note: Round each of the discounted values of the of dividends to the nearest tenth decimal place before plotting it on the graph. You can mouse over

the points in the graph to see their coordinates.