• The PB Plc, as an electricity utility, is guaranteed a 15% return on equity by the state. The company’s earnings per share was €100 in the last closed year. The annual general meeting decided not to pay dividend now and during the following three years, because the market needs are required to make a remarkable capacity enlargement. After this transition period, the company returns to its traditional dividend policy and (first, four years from now) pays out the 90% of the annual earnings as dividend. Calculate the price of the stock with a discount rate (expected rate of return) of 12%!