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Integrated Potato Chips just paid a $1.4 per share dividend. You expect the dividend to grow steadily at a rate of 5% per year a.
Integrated Potato Chips just paid a $1.4 per share dividend. You expect the dividend to grow steadily at a rate of 5% per year a. What is the expected dividend in each of the next 3 years? b. If the discount rate for the stock is 11%, at what price will the stock sell today? 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 (i0) 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. Req B and C Req A Req D Req E What is the expected dividend in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected Dividend Year 3 Year 1 Year 2 Dividend Year b. Current price Sale of stock Year 2 c. Future price Total cash flow Year 3 Year 2 Year 3 Year 1
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