Integrated Potato Chips just paid a $2.8 per share dividend. You expect the dividend to grow steadily at a rate of 4% per year.

What is the expected dividend in each of the next 3 years?

If the discount rate for the stock is 12%, at what price will the stock sell today?

What is the expected stock price 3 years from now?

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?

What is the present value of the stream of payments you found in part (d)?