Your broker offers to sell you some shares of Bahnsen & Co. common stock that peld a dividend of $1.25 yesterday. Bahnsen's dividend is expected to grow at 7% 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 9% a. Find the expected dividend for each of the next 3 years; that is calculate D4, D. and D. Note that Do - $1.25. Round your answer to the nearest cent. D- D- D $ 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 Dr. Da, and Dy, and then sum these Pus. Round your answer to the nearest cent. Do not round your intermediate calculations. c. You expect the price of the stock 3 years from now to be $81.92; that is, you expect P, to equal $81.92. Discounted at a 9% rate, what is the present value of this expected Nature stock price? In other words, calculate the PV of $81.92. Round your answer to the nearest cont. Do not round your intermediate calculations d. If you plan to buy the stock, hold it for 3 years, and then seilt for $81.92, what is the most you should pay for it today Round your answer to the nearest cent. Do not round your intermediate calculations e. Use equation below to calculate the present value of this stock Po D. (1+) 18 T- Asume that and that it is constant. Do not round Intermediate clovations. Round your answer to the rest cent. 1. Is the value of this stock dependent upon how tong you plan to hold it? In other words, if your planned holding period an 2 years or years rather than 3 years, would this affect the value of the stock today. Per 1. Yes. The value of the stock is dependent upon the holding period out to the fact that the value in determined as the present value of a future expected dividends 11. No. The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the foreseeable future: III. Yes. The value of the stock is dependent upon the holding period as long as the growth rate remains constant for the forestable future. Vakanth baldin eta The value calculated in as a through d is the value for a 3-vear holdina eriod. It is a