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Here are data on two stocks, both of which have discount rates of 15% a. What are the dividend payout ratios for each firm? (Enter

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Here are data on two stocks, both of which have discount rates of 15% a. What are the dividend payout ratios for each firm? (Enter your answers as o percent rounded to 2 decimal places.) b. What are the expected dividend growth rates for each stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) c. What is the proper stock price for each firm? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Problem 7-12 Dividend Discount Model (LO2) Integrated Potato Chips just paid a $1 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year. a. What is the expected dividend in each of the next 3 years? 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 flows 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)? Complete this question by entering your answers in the tabs below. If you buy the stock and plan to sell it 3 years from now, what are your expected cash flows in (i) year 1; (ii) year 2; (iii) year 3? (Do not round intermediate calculations. Round your answers to 2 decimal phaces.) Problem 7-12 Dividend Discount Model (LO2) Integrated Potato Chips just pald a $1 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year. a. What is the expected dividend in each of the next 3 years? 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 flows 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)? Complete this question by entering your answers in the tabs below. What is the present value of the stream of payments you found in part (d)? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

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