Problem:
Star Light & Power increases its dividend 3 percent per year every year. This utility is valued using a discount rate of 10 percent, and the stock currently sells for $53 per share. If you buy a share of stock today and hold on to it for at least three years,
Problem:
Question 1: What do you expect the value of your dividend check to be three years from today? Please explain in detail and also provide step by step solution.