Please use Excel functions to show work if needed.

Part One: IBM stock will pay a $12 per share annual dividend in perpituity. If investors require a 12% rate of return, what should be the price of this stock today? Part Two: If IBM is expected to pay a $12 dividend next period and dividends are expected to grow at 5 percent annually, what should be the price of this stock today if investors require a 12 percent rate of return? Part Three: If IBM is expected to pay a $12 divident next period and dividends are expected to grow at at 5 percent annually for the next two years and then fall to a constant 3 percent annual growth rate, what shoudl be the price of this stock today if investors require a 12 percent rate of return? Part Four: If IBM is currently trading at $150 per share, would you recommend buing the stock under the assuptions of Part One, Part Two and/or Part Three