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Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a dividend of $2.75 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 $2.75 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 10%. a. Find the expected dividend for each of the next 3 years; that is, calculate D, D2, and Dy. Note that Do $2.75. Do not round intermediate calculations. Round your answers 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 D, D, and Ds, 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 $120.16; that is, you expect P, to equal $120.16. Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $120.16. 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 $120.16, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent

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