Question: Just need (e) Dividend Discount Model. Integrated Potato Chips just paid a Sl per You expect the dividend to grow steadily at a rate of
Dividend Discount Model. Integrated Potato Chips just paid a Sl per You expect the dividend to grow steadily at a rate of 4% per year. ( a. What is the expected dividend in each of the next 3 years? b. If the discount rate for the stock is 12%, at what price will the sto c. What is the expected stock price 3 years from now? d. If you buy the stock and plan to sell t 3 years from now, what are your expected cash flows L07-2) in (i) year 1; (ii) year 2; (iii) year 3? What is the present value of the stream of payments you found in part (d)? Compare your answer to part (b). e
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