Q1) Holding Period Return (HPR) a) You purchase stock at P0=$10.00. The expected future dividend and price in one-year are D1=$1.50 and P1=$11.50 respectively. What is the expected holding period return? b) A company just paid a dividend of D0=$2.00. The dividend is expected to grow at a rate g= 3%. The company has a discount rate (market capitalization rate) of k=8%. In one year you sell the stock at its intrinsic value. What is your holding period return? c) A company just paid an annual dividend of D0=$2.50. The dividend is expected to grow at an annual rate of g=3%. If the intrinsic price in year t=3 is P3=$50.00 and the market capitalization rate of the company is k=8% what is the current intrinsic value of the stock P0