MC Qu. 8-A6 The Bell Weather Co. is a new firm in a rapidly growing in... The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $3.40 per share. What is the current value of one share of this stock if the required rate of return is 8.90 percent?

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Problem 9,17 (Constant Growth) Stick Vali Your bruker offers to sell you sume shares of Bahnsen & Co. common stuck that paid a dividend of $1.00 yesterday. Bahnsen's dividend is expected to grow at 5% next 3 years. If per year for the you buy the stuck, you plan to hold it for 3 years and then sell it. The appropriate discount rate is 13% a) Find the expected dividend for each of the next 3 years; that is calculate D₁, D₂, and D3. Note that Do $1.00. 0₁ = $ D₂ = $ D₂ = 1 2 copilul raya b) Given that the first dividend payment will occur 1 year from now, find the present value of the dividend stream; that is calculate the PVs of Dg, Pr, and Ds, and then sem these PUs. 4 elds C.) You expect the price of the stock 3. years from now to be $15.19; that is, you expect P3 to equal $15.19. Discunted at a 13% rate, what is the present value of this expected future stuck price? In other words, Calarlate the PV of $15.19. $ d) If you plan to buy the stock, hold it for 3 years, and then sell it…