3. Expected dividends as a basis for stock values The foilowing graph shows the value of a stock's dividends over time. The stock's current dividend is $1.00 per shate, and dividends are expected to grow at a constant rate of 4.50% per year. The intrinsic value of a stock should equal the sum of the present value (pV) of all of the dividends that a stock is supposed to pay in the future, but many people find it d fficult to imagine adding up an infinite number of dlvidends. Calculate the present value (PY) of the dividend paid today (Ds) and the discounted value af the dividends expected to be paid 10 , 20 , and 50 years from now (D10,D20,D90). Aspume that the stocks required retum (f2) is 5.40%. Note: Carry and round the calculations to four decimal places. Using the blue curve (circe symbols), plot the future value of each of the expected future dividends for years 10 , 20 , and 50 . The resuting curve wili Wlitrate how the FV of a particular dividend payment wit increase depending en how tar from today the dividend is expected to be received. Note: Round esch of the discoumed values of the dividends to the nearest tenth decimal place before plotting it on the graph, You can mouse over the points in the qraph to see their coordinates. Note: Round esch of the discounted values of the dividends to the nearest tenth decimal place before plotting it on the graph. You can mouse over the points in the graph to see their coordinates