Martin Office Supplies paid a $$3$ dividend last year. The dividend is expected to grow at a constant rate of $7$ percent over the next four years. The required rate of return is $14$ percent $($this will also serve as the discount rate in this problem$).$ Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Compute the anticipated value of the dividends for the next four years.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.

Calculate the present value of each of the anticipated dividends at a discount rate of $14$ percent.

Note: Do not round intermediate calculations. Round your final answers to $2$ decimal places.

Compute the price of the stock at the end of the fourth year $($P$4)$

$.$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Calculate the present value of the year $4$ stock price at a discount rate of $14$ percent.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Compute the current value of the stock.

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

Use the formula given below to show that it will provide approximately the same answer as part e$.$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

P$0=$ D$1$ Ke $$ g

If current EPS were equal to $$5\mathrm{.}32$ and the P$/$E ratio is $1\mathrm{.}1$ times higher than the industry average of $8,$ what would the stock price be$?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

By what dollar amount is the stock price in part g different from the stock price in part f$?$

Note: Do not round intermediate calculations. Round your final answer to $2$ decimal places.

With regard to the stock price in part f$,$ indicate which direction it would move if: