Problem 7-11 Stock Values (LO2) Integrated Potato Chips paid a $1 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 4% per year.

a. What is the expected dividend in each of the next 3 years? (Round your answers to the nearest cent.)

b. If the discount rate for the stock is 12%, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to the nearest dollar.)

c. What is the expected stock price 3 years from now? (Round your intermediate calculations to 4 decimal places. Round your final answer to the nearest cent.)

d-1. If you buy the stock and plan to hold it for 3 years, what payments will you receive? (Do not round intermediate calculations. Round your answers to the nearest cent.)

d-2. What is the present value of those payments? (Do not round intermediate calculations. Round your answer to the nearest dollar.)