Integrated Potato Chips paid a $2.70 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 6% per year. a) What is the

Integrated Potato Chips paid a $2.70 per share dividend yesterday. You expect the dividend to grow steadily at a rate of 6% per year.a) What is the DIV for years 1-3? What is the selling price years 1-3? What is the total cash flow years 1-3?

Solution:DIVSelling priceTotal cash flowPV of cash flow $2.86 $3.03 $2.862.60 $3.03712.51 $3.2285.22$88.4466.44