Question: Numeric (1) Problem - Dividend Discount Model Petkim recently paid $1.6 dividend per share and the dividend is expected to rise at a steady rate

Numeric (1)

per share and the dividend is expected to rise at a steady

rate of 4% each year. a. Calculate the expected dividends for the

next three years. b. Calculate the price of the stock today given

12% discount rate. c. Calculate the expected stock price three years from

Problem - Dividend Discount Model Petkim recently paid $1.6 dividend per share and the dividend is expected to rise at a steady rate of 4% each year. a. Calculate the expected dividends for the next three years. b. Calculate the price of the stock today given 12% discount rate. c. Calculate the expected stock price three years from now. d. Assume that Kerem buys a Petkim stock today and sells it 3 years from now Calculate the total cash flows that Kerem expects to receive in year 1. year 2. and year 3. e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Ren A Reg Band Reg D Reg E Complete this question by entering your answers in the tabs below. Req A Reg B and C Req D ReqE Calculate the expected dividends for the next three years. (Do not round Intermediate calculations. Round your answers decimal places.) Expected Dividend Year 1 Year 2 Year 3 Req Bandc> e. Calculate the present values of each cash flows you found in part (d) separately. Complete this question by entering your answers in the tabs below. Reg A Reg B and C Reg D ReqE Calculate the price of the stock today and the expected stock price three years from now given 12% discount rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Current price C. Future price Complete this question by entering your answers in the tabs below. Rega Reg B and C Req RegE Assume that Kerem buys a Petkim stock today and sells it 3 years from now. Calculate the total cash flows that Kerem expects to receive in year 1, Year 2, and year 3. (Do not round Intermediate calculations. Round your answers to 2 decimal places) Year 1 Year 2 Year 3 Dividend Sale of stock Total cash flow Complete this question by entering your answers in the tabs below. Req A Reg Band Reg D ReqE Calculate the present values of each cash flows you found in part (d) separately. (Do not round Intermediate calculations, Round your answers to 2 decimal places.) Year 1 Year 2 Year 3 PV of cash flow

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