PART A

PART B

Suppose 3M is currently trading for $108.24 per share. The company is expected to pay the following annual dividends on its common stock over the next 3 years: $1.4,$1.2, and $2.1 at the end of year 1, 2, and 3 respectively. Find the expected price (ex-dividend) for 3M's stock in 3 years from today just before the last dividend is paid if their expected return is estimated to be 15.61% per year (hint: the 15.61% percent is not a holding period return). Suppose 3M is currently trading for $119.41 per share. The company is expected to pay the following annual dividends on its common stock over the next 3 years: $2.4, $1.1, and $2.1 at the end of year 1,2 , and 3 respectively. Find the expected price (exdividend) for 3M's stock in 3 years from today just before the last dividend is paid if their expected return is estimated to be 16.93% per year (hint: the 16.93% percent is not a holding period return). Suppose 3M is currently trading for $108.24 per share. The company is expected to pay the following annual dividends on its common stock over the next 3 years: $1.4,$1.2, and $2.1 at the end of year 1, 2, and 3 respectively. Find the expected price (ex-dividend) for 3M's stock in 3 years from today just before the last dividend is paid if their expected return is estimated to be 15.61% per year (hint: the 15.61% percent is not a holding period return). Suppose 3M is currently trading for $119.41 per share. The company is expected to pay the following annual dividends on its common stock over the next 3 years: $2.4, $1.1, and $2.1 at the end of year 1,2 , and 3 respectively. Find the expected price (exdividend) for 3M's stock in 3 years from today just before the last dividend is paid if their expected return is estimated to be 16.93% per year (hint: the 16.93% percent is not a holding period return)