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Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $2.00 yesterday. Bahnsen's dividend is expected

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Your broker offers to sell you some shares of Bahnsen \& Co. common stock that paid a dividend of $2.00 yesterday. Bahnsen's dividend is expected to grow at 8% 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 D1,D2, and D3. Note that D0=$2.00. Do not round intermediate calculations. Round your answers to the nearest cent. D1=$D2=$D3=$ 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 D1, D2, and D3, 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 $54.42; that is, you expect P3 to equal $54.42. Discounted at a 13% rate, what is the prent nearest cent. $ d. If you plan to buy the stock, hold it for 3 years, and then sell it for $54.42, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent. $ e. Use equation below to calculate the present value of this stock. P0=rSgD0(1+g)=rSgD1 Assume that g=8% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent. $ f. Is the value of this stock dependent upon how long you plan to hold it? In other words, if your planned holding period was 2 years or 5 years rather than 3 . years, would this affect the value of the stock today, P0

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