Ch 09. End-of-Chapter Problems - Stocks and Their Valuation ebook Your broker offers to sell you some shares of Bahnsen & Co. common stock that paid a vidend of $3.25 yesterday. Bahnsen's dividend is expected to grow at 6% per year for the next 3 years. If you buy the stock plan to hold it for 3 years and then sell it. The appropriate discount rate is 10% .. Find the expected vidend for each of the next 3 years; that is calculate D1, D2, and Ds. Note that Do - 33.25. Do not round intermediate calculation. Round your answers to the nearest cent. DS 25 Dys Given that the first dividend payment wil occur 1 year from now, find the present value of the dividend stream; that is calculate the Ps of O, D2, and Ds, and then sum these P. Do not found intermedia Calculations. Round your answer to the nearest cent 5 You expect the price of the stock 3 years from now to be $102.58; that is you expect to equat $102.5. Discounted at a 10% rate, what is the present value of this expected future stock nice in other words, calculate the P of $102.56. Do not round Wermediate calculations. Round your answer to the nearest cent. $ d. you plan to the lock, hold it for 3 years, and then sell it for 102.58, what is the most you should pay for it today? Do not round intermediate calculations. Round your answer to the nearest cent Use coustion below to calde ha present we of vis stock Asume and cost. Do not und intermediate clowns. Round your swer to the nearest cont tls the vale of this monton hing you plan to hold it? In other words, your planned holding period 2 years of years rather than 3 years would the evolue of the stock tady