Your broker offers to sell you some shares of Bahnsen & Co$.$ common stock that paid a dividend of $$2\mathrm{.}00$ yesterday. Bahnsen's dividend is expected to grow

at $4\%$ per year for the next $3$ years. If you buy the stock, you plan to hold it for $3$ years and then sell it$.$ The appropriate discount rate is $13\%.$

a$.$ Find the expected dividend for each of the next $3$ years; that is$,$ calculate $D_1,D_2,$ and $D_3.$ Note that $D_0=$$$2\mathrm{.}00.$ Do not round intermediate calculations.

Round your answers to the nearest cent.

$D_1=$$

$D_2=$$

$D_3=$$

b$.$ Given that the first dividend payment will occur $1$ year from now, find the present value of the dividend stream; that is$,$ calculate the PVs of $D_1,D_2,$ and

$D_3,$ and then sum these PVs$.$ Do not round intermediate calculations. Round your answer to the nearest cent.

$

c$.$ You expect the price of the stock $3$ years from now to be $$26\mathrm{.}00$; that is$,$ you expect widehat$(P{)}_3$ to equal $$26\mathrm{.}00.$ Discounted at a $13\%$ rate, what is the present

value of this expected future stock price? In other words, calculate the PV of $$26\mathrm{.}00.$ Do not round intermediate calculations. Round your answer to the

nearest cent.

$

d$.$ If you plan to buy the stock, hold it for $3$ years, and then sell it for $$26\mathrm{.}00,$ what is the most you should pay for it today? Do not round intermediate

calculations. Round your answer to the nearest cent.

$