your broker offers to sell you some shares of bahnsen & Co.common stock that paid a dividend of $2 yesterday. you expect the dividend to grow at the rate of 5% per year for the next 3 years and , if you buy the stock , you plan to hold it for 3 year and then sell it.
C. if you plan to buy the stock, hold it for 3 years, and then sell it for 34 ,what is the most you should pay for it?
E. Use Equation 0.2 to calculate the present value of this stock. Assume that g=5% and it is constant.
F. is the value of this stock dependent upon how long you plan to hold it. In other words,if you planed period were 2 years or 5 years rather than 3 years, would this affect the value of the stock today. Po?