Trump Office Supplies paid a $6 dividend last year. The dividendis expected to grow at a constant rate of 8 percent over the nextfour years. The required rate of return is 14 percent (this willalso serve as the discount rate in this problem). Use Appendix Bfor an approximate answer but calculate your final answer using theformula and financial calculator methods.   
  
a. Compute the anticipated value of the dividendsfor the next four years. (Do not round intermediatecalculations. Round your final answers to 2 decimal places.)
  

     
  
b. Calculate the present value of each of theanticipated dividends at a discount rate of 14 percent. (Donot round intermediate calculations. Round your final answers to 2decimal places.)
  

     
  
c. Compute the price of the stock at the end ofthe fourth year (P₄). (Do not roundintermediate calculations. Round your final answer to 2 decimalplaces.)
  

     
  
d. Calculate the present value of the year 4 stockprice at a discount rate of 14 percent. (Do not roundintermediate calculations. Round your final answer to 2 decimalplaces.)
  

     
  
e. Compute the current value of the stock.(Do not round intermediate calculations. Round your finalanswer to 2 decimal places.)
  

     
  
f. Use the formula given below to show that itwill provide approximately the same answer as part e.(Do not round intermediate calculations. Round your finalanswer to 2 decimal places.)

    

P0	=	D1
		Ke ? g

    
     
  
g. If current EPS were equal to $8.25 and the P/Eratio is 1.32 times higher than the industry average of 10, whatwould the stock price be? (Do not round intermediatecalculations. Round your final answer to 2 decimal places.)
  

     
  
h. By what dollar amount is the stock price inpart g different from the stock price in part f?(Do not round intermediate calculations. Round your finalanswer to 2 decimal places.)
  

     
  
i. With regard to the stock price in partf, indicate which direction it would move if: