Question: 1. A com panv's stock is expected to have a supernormal growth rate of 30% over the next three years. Before settling down to a

1. A com panv's stock is expected to have a supernormal

1. A com panv's stock is expected to have a supernormal growth rate of 30% over the next three years. Before settling down to a stable growth rate of 6% forever. The company has just paid a dividend ofSl per share and the required return on this companv's shares is 10% a] What are the expected dividends per share for the next four years? (2 marks] b] What is the expected share price in three vears' time?I {2 marks} (I) What is this company's share price today? Hint: Calculate the present values of expected dividends and share price in three vears' time. (5 marks]

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