Stock Values.    Integrated Potato Chips paid a $1 per share dividend   
                  yesterday.  You expect the dividend to grow steadily
at a rate of 4 percent per
                  year.

a.	What is the expected dividend in each of the next 3 years?
b.	If the discount rate for the stock is 12 percent, at what price
will the stock sell?
c.	What is the expected stock price 3 years from now?
d.	If you buy the stock and plan to hold it for 3 years, what payments
will you receive?  What is the present value of those payments? 
Compare your answer to (b).

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Clarification of Question by sumi15-ga on 06 Dec 2004 21:16 PST

Could I please request livioflores-ga to answer my question.