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If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 13%. cent. D1=$D2=$D3=$

image text in transcribed If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 13%. cent. D1=$D2=$D3=$ round intermediate calculations. Round your answer to the nearest cent. $ price? In other words, calculate the PV of $31.56. Do not round intermediate calculations. Round your answer to the nearest cent. $ nearest cent. $ e. Use equation below to calculate the present value of this stock. P0=rSgD0(1+g)=rSgD1 Assume that g=6% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent. $ the stock today, P0 ? part e. Any other holding period would produce the same value of P0. part e. Any other holding period would produce a different value of P0. IV. No. The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the foreseeable future. V. Yes. The value of the stock is dependent upon the holding period as long as the growth rate remains constant for the foreseeable future

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