Ball Bearings paid a $7 dividend last year. The dividend is expected to grow at a constant rate of 5 percent over the next four years. The required rate of return is 13 percent (this will also serve as the discount rate in this problem).

A. Compute the anticipated value of the dividends for the next four years.

B. Calculate the present value of each of the anticipated dividends at a discount rate of 13 percent.

C. Compute the price of the stock at the end of the fourth year (P4).

D. Calculate the present value of the year 4 stock price at a discount rate of 13 percent.