Yesterday a security just paid $2.8 to its investor. The investors expects the cash flows to grow steadily at a rate of 5% per year forever.

a.	What is the expected cash flows in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Expected Dividend
Year 1	$
Year 2
Year 3

b.	If the discount rate for the security is 895%, at what price will the security sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current price

$

c.	What is the expected price of the security 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Future price

$

d.	If you buy the security and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Year 1	Year 2	Year 3
DIV	$	$	$
Selling price
Total cash flow
PV of cash flow
sum of the PV's $