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4) Ionic Corp's stock is selling for $85/share

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4) Ionic Corp's stock is selling for $85/share. You expect dividends to be $1.32/share over the next year (Year 1), $1.42/share in Year 2 and $1.53/share in Year 3, and you anticipate the stock will be trading at $118/share at the end of Year 3. a. Draw a timeline assuming all cash flows occur at the end of a each year. b. If you have estimated Ionic Corp's Cost of Equity to be 8.6%, what do you believe the true value of the stock is today? c. Given your answer to 4. b., what would you recommend to your clients?