Question: 1 Problem 7-12 Dividend Discount Model (LO2) 10 Integrated Potato Chips just paid a 514 per share dividend. You expect the dividend to grow steadily
1 Problem 7-12 Dividend Discount Model (LO2) 10 Integrated Potato Chips just paid a 514 per share dividend. You expect the dividend to grow steadily at a rate of 5% per yeat. a What is the expected dividend in each of the next 3 years? b. If the discount rate for the stock is 11%, at what price will the stock sell today? c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to sell years from now, what are your expected cash flow in (0) year 100 year 2010 year? e. What is the present value of the stream of payments you found in part (0) DO Complete this question by entering your answers in the tabs below. Reg He and c Reg Reg What is the expected dividend in each of the next years? (Do not found intermediate Ciculations. Round your answers to decimal place) Expected Dividend Year 1 Year 2 You 3 ReqB and C>
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