Question: the answer is $101.85. please show all work. thanks! Exhibit 8.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Consider a firm that has just

the answer is $101.85. please show all work. thanks!

Exhibit 8.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Consider a firm that has just paid a dividend of $1.5. An analyst expects dividends to grow at a rate of 9 percent per year for the next three years. After that dividends are expected to grow at a normal rate of 5 percent per year. Assume that the appropriate discount rate is 7 percent. 16. Refer to Exhibit 8.4. The future price of the stock in year 3 is a. $81.75. b. $84.81. c. $92.56. d. $101.85. e. $111.16

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