Integrated Potato Chips just paid a $2.0 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? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b) If the discount rate for the stock is 11%, at what price will the stock sell today and what is the expected stock price 3 years from now? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Current Price: ? Future Price: ?

c)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 places.)

	Year 1	Year 2	Year 3
Dividend
Save On Stock
Total Cash Flow

d)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.)

	Year 1	Year 2	Year 3
PV of Cash Flows