Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.00 yesterday. Bahnsen's dividend is expected to grow at 5% 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%.

1. Find the expected dividend for each of the next 3 years; that is, calculate D₁, D₂, and D₃. Note that D₀ = $3.00. Do not round intermediate calculations. Round your answers to the nearest cent. D₁ = $ ? D₂ = $ ? D₃ = $ ?
2. 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 D₁, D₂, and D₃, and then sum these PVs. Do not round intermediate calculations. Round your answer to the nearest cent.
3. You expect the price of the stock 3 years from now to be $45.58; that is, you expect to equal $45.58. Discounted at a 13% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $45.58. Do not round intermediate calculations. Round your answer to the nearest cent.
4. If you plan to buy the stock, hold it for 3 years, and then sell it for $45.58, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent.