fundamentals of corporate finance ninth edition

Chapter 7 Valuing Stocks 12. Dividend Discount Model. Integrated Potato Chips just paid a S1 per share dividend You expect the dividend to g a. Wh b. If the discount rate for the stock is 12%, at what price will the stock sell? c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to sell it 3 years from now, what are your expected cash flow row steadily at a rate of 4% per year. (L07-2) at is the expected dividend in each of the next 3 years? in (i) year 1; (ii) year 2; (iii) year 3? e. What is the present value of the stream of payments you found in part (d)? Compare yor tufuurnd rtock with an $8 annual dividend th answer to part (b)