Problem 7-11 Stock Values (LO2) (Adjusted to be formula given) Integrated Potato Chips paid a $1.60 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 11.50% per year forever. a. What is the expected dividend in each of the next 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected Dividend $ Year 1 Year 2 Year 3 1.78 1.991 2.22 b. If the discount rate for the stock is 12.00%, at what price will the stock sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current price $ 356.80 c. What is the expected stock price 3 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future price d. If you buy the stock and plan to hold it for 3 years, what payments will you receive? What is the present value of those payments? (Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Round your answers to 2 decimal places.) Year 1 $ Year 2 $ Year 3 $ 2.22 1.78 $ 1.99 DIV Selling price 0 0 1.78 1.99 Total cash flow PV of cash flow sum of the PV's $