Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $3.50 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 9%.

1. Find the expected dividend for each of the next 3 years; that is, calculate D1, D2, and D3. Note that D0 = $3.50. 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 $476.17; that is, you expect P3 to equal $476.17. Discounted at a 9% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $476.17. 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 $476.17, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent. $
5. Use equation below to calculate the present value of this stock. P0=[D0(1+g)]/(rs-g) = D1/(rs-g) Assume that g = 8% and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent. $