Stock A pays a dividend of $3 per share next year. The discount rate is 10%.

Stock Valuation DIV/R

1.If you hold the stock for one year, what is the price for stock A you have to pay now (P0) ?

2.If you hold the stock for two years, what is the price for stock A you have to pay now (P0)?

3.If you hold the stock for three years, what would be the price for stock A three years from now (P3)?

4.If you hold the stock for two years, what would be the price for stock A two years from now (P2)?