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$7.$ Problem $9\mathrm{.}17$

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c$.$ You expect the price of the stock $3$ years from now to be $$238\mathrm{.}09$; that is$,$ you expect $ Round your answer to the nearest cent. Do not round your intermediate calculations. $q,$ to equal $$238\mathrm{.}09.$ Discounted at a $10\%$ rate, what is the present value of this expected future stock price? In other words, calculate the PV of $$238\mathrm{.}09.$

$q,$

e$.$ Use equation below to calculate the present value of this stock.

$ Assume that $g=8\%$ and that it is constant. Do not round intermediate calculations. Round your answer to the nearest cent.

$

I. Yes. The value of the stock is dependent upon the holding period due to the fact that the value is determined as the present value of all future expected dividends.

II$.$ No$.$ The value of the stock is not dependent upon the holding period unless the growth rate remains constant for the foreseeable future.

III. Yes. The value of the stock is dependent upon the holding period as long as the growth rate remains constant for the foreseeable future.