Skip to main content Section Three: Comprehensive Questions AnswerSaved Help opens in a new windowSave & ExitSubmit Item$710$points Time Remaining $2$ hours $34$ minutes $17$ seconds $02$:$34$:$17$ Item $7$ Time Remaining $2$ hours $34$ minutes $17$ seconds $02$:$34$:$17$ Hunter Petroleum Corporation paid a $$3$ dividend last year. The dividend is expected to grow at a constant rate of $5$ percent forever. The required rate of return is $14$ percent $($this will also serve as the discount rate in this problem$).$ Note: Use a Financial calculator to arrive at the answers. Compute the anticipated value of the dividends for the next three years. Note: Do not round intermediate calculations. Round the final answers to $3$ decimal places. $$Anticipated valueD$1$$ D$2$$ D$3$$ Calculate the present value of each of the anticipated dividends at a discount rate of $14$ percent. Note: Do not round intermediate calculations. Round the final answers to $3$ decimal places. $$PV of dividendsD$1$$ D$2$D$3$ Total$ $$ Compute the price of the stock at the end of the third year $($P$3).$ Note: Do not round intermediate calculations. Round the final answer to $2$ decimal places. P$3=$ D$4($Ke $$ g$)($D$4$ is equal to D$3$ times $1\mathrm{.}05)$ Price of the stock$$$ Calculate the present value of the year $3$ stock price at a discount rate of $14$ percent. Note: Do not round intermediate calculations. Round the final answer to $3$ decimal places. Price of the stock $($discounted$)$$ Compute the current value of the stock. Note: Do not round intermediate calculations. Round the final answer to $2$ decimal places. Current value$$$ Use formula given below to show that it will provide approximately the same answer as part e$.$ Note: Do not round intermediate calculations. Round the final answer to $2$ decimal places. P$0=$ D$1($Ke $$ g$)$ For formula $108,$ use D$1=$ $$3\mathrm{.}15,$ Ke $=14$ percent, and g $=5$ percent. $($The slight difference between the answers to parts e and f is due to rounding.$)$ Current value$$$ Prev Question $7$ of $7$ Total$7$ of $7$ Visit question mapThis is the last question in the assignment. To submit, use Alt $+$ S$.$ To access other questions, proceed to the question map button.Next