8-38 Exercise U Bhd (UB), is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that time, but when it is complete, it should allow the compan to enjoy much improved growth in earnings an dividends. Last year, UB paid a dividend of RM3.40. It expects zero growth in the next year In years 2 and 3.5% growth is expected, and in year 4, 15% growth. In year 5 and thereafter, rowth should be a constant 10% per year. What s the maximum price per share that an investor who requires a return of 14% should pay for ordinary share of UB? 8-39