Rework Table $7\mathrm{.}4$ for horizon years $1,2,3,$ and $10,$ assuming that investors expect the dividend and the stock price to increase at only

$6\%$ a year and that each investor requires the same $12\%$ expected return. The company will pay a dividend of $$1\mathrm{.}50$ at the end of the

first year.

What value would an investor place on the stock?

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.

TABLE $7\mathrm{.}4$ Value of Blue Skies.

Horizon $($years$)$ PV $($dividends$)$ PV $($terminal price$)$ Value per Share

$1$ $$2\mathrm{.}68$ $ $72\mathrm{.}32$ $ $75$

$2$ $$5\mathrm{.}26$ $$69\mathrm{.}74$ $$75$

$3$ $$7\mathrm{.}756$ $$7\mathrm{.}25$ $$75$

$10$ $$22\mathrm{.}87$ $$52\mathrm{.}13$ $$75$