Please use the following information for questions 1-4 (be careful about rounding).

Stock A pays a dividend of $3 per share next year. The discount rate is 10%.

1. If you hold the stock for one year, what is the price for stock A you have to pay now (P0) ?

A) $30

B) $33

C) $36

D) $ 35

E) None of the above

2. If you hold the stock for two years, what is the price for stock A you have to pay now (P0)?

A) $30

B) $33

C) $35

D) $40

E) None of the above

3. If you hold the stock for three years, what would be the price for stock A three years from now (P3)?

A) $39

B) $33

C) $36

D) $ 30

E) None of the above

4. If you hold the stock for two years, what would be the price for stock A two years from now (P2)?

A) $30

B) $33

C) $36

D) $35

E) None of the above