uc value this stock? P8.12 Assume you've generated the following information about the stock of Bufford's Burger ear, Barns: The company's latest dividends of $4 a share are expected to row to to $4.67 the year after that, and to S5.04 in three grow at a constant 6% rate. a. Use the variable growth version of the dividend valuation mode years. After that, you think dividends will return of 15% to find the value of the stock. l and a required b. Suppose you plan to hold the stock for three years, selling it immediately after receiv- ing the $5.04 dividend. What is the stock's expected selling price at part (a), assume a required return of 15%. Imagine that you buy the stock today paying a price equal to the value that you calculated in part (a). You hold the stock for three years, receiving the dividends as described above. Immediately after receiving the third dividend, you sell the stock at the price calculated in part b. Use the IRR approach to calculate the expected return on the stock over three years. Could you have guessed what the answer would be before doing the calculation? Suppose the stock's current market price is actually $44.65. Based on your analysi from part a, is the stock overvalued or undervalued? that time? As in c. d. e. A friend of yours agrees w ith your projections of Bufford's future dividends, but he believes that in three years, just after the company pays the $5.04 dividend, the stock will be selling in the market for $53.42. Given that belief, along with the stock's cur- rent market price from part d, calculate the return that your friend expects to earn on this stock over the next three years