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im not sure what to do, if someone could please help? Your braker offers to tell you some shares of Bahnsen & Co. common stock

im not sure what to do, if someone could please help? image text in transcribed
Your braker offers to tell you some shares of Bahnsen & Co. common stock that paid a dividend of $2.00 yesterday. Bahnsen's dividend is expected to grow at 6% per year for the next years. If you buy the stock, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 13%. . Find the expected dividend for each of the next 3 years, that is calculate D1, D2, and D. Note that Do = $2.00. Do not round Intermediate calculations, Round your answers to the nearest cont. D1 = 5 025 D3 = 5 2.12 2.25 2.39 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 Ps of D1, D, and D. and then sum these PVs. Do not found intermediate calculations. Round your answer to the nearest cent. 5 c. You expect the price of the stock 3 years from now to be $36.07; that is, you expect P, to equni $36.07. Discounted at a 13% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $36.07. Do not round Intermediate calculations. Round your answer to the nearest cent. $ d. If you plan to buy the stock, hold it for 3 years, and then sell it for 536.07, what is the most you should pay for it today? Do not round intermediate calculations Round your answer to the nearest cent s 1) e. Use equation below to calculate the present value of this stock. fo Do(1) 13 Assume that 9 -6% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cont. fi is the value of this stock dependent upon how long you plan to hold it? In other words, if your planned holding period was 2 years or 5 years rather than 3 years, would this affect the value of the stock today, P,? 1. No. The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the foreseeable future. II. Yes. The value of the stock la dependent upon the holding period as long as the growth rate remains constant for the foreseeable future. III. No. The value of the stock is not dependent upon the holding period. The value calculated in parts a through d is the value for a 3-year holding period. It is equal to the value calculated in parte. Any other holding period would produce the same value of P IV. Yes. The value of the stock is dependent upon the holding period. The value calculated in ports a through d is the value for a 3-year holding period. It is not equal to the value calculated in parte. Any other holding period would produce a different value of Po V. YesThe 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

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