Peter$$s Pickle Chips $($PPC$)$ paid $$2$ in dividends this past year. Analysts expect this

payment will grow at $6$ percent annually for the indefinite future.

a$)$ What stock price is forecast with this model if a discount rate of $10$ per cent is

appropriate $($use the constant growth model$)?$

b$)$ What are the expected dividends for the next two years? $($i$.$e$.$ DIV$1$ and

DIV$2)?$

c$)$ What is the present value of these two dividends?

d$)$ What will be the estimated value of PPC two years from now?

e$)$ What is the present value of this price discounted to the present time $($time

zero$)?$