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Integrated Potato Chips paid a $1.40 per share dividendyesterday. You expect the dividend to grow steadily at a rate of 5% per year. a. What

Integrated Potato Chips paid a $1.40 per share dividendyesterday. 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.)

Expected Dividend
Year 1 $
Year 2
Year 3

b.

If the discount rate for the stock is 11%, at what price will the stock sell today?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current price $

c.

What is the expected stock price 3 years from now?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Future price $

d.

If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments?(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

d.

If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments?(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Year 1 Year 2 Year 3
Dividend $ $ $
Sale of stock
Total cash flow $ $ $
PV of cash flow $ $ $

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