Your broker offers to sell you some shares of FFC a common stock
that paid a dividend of Rs. 2 yesterday. FFC dividend is expected
to grow at 5% per year for the next 3 years, and, if you buy the
stock, you planned to hold it for 3 years and then sell it. The
appropriate discount rate is 12 percent.
a. Find the expected dividend for each of the next 3 years; that
is, calculate D₁, D₂, and D₃....