A company is expected to pay the dividend below next year. The expected plow-back ratio and the ROE of the company for the next 5 years are also provided, from which you can calculate the expected short-term growth rate of the company. The long-term growth rate (after the initial 5 years) and the required rate of return by the investors is provided as well.

- Dividend per share next year (D1) = $2.34

- Plow-Back Ratio ( first 5 years ) = 0.54

- ROE ( first 5 years ) = 20%

- Long-term growth rate = 8.20%

- Required rate of return = 15.00%

a) Calculate the share price of the company using the dividend discount model.

b) Create a sensitivity analysis table, showing the sensitivity of the share price to changes in (i) long-term growth rate and (ii) required rate of return, for the following ranges:

- long- term growth rate = +/-2% of the number given above

- Required rate of return = +/- 3% of the number given above

c) create a tornado chart, presenting your results on the impact of changes in assumptions on the share price in part (b)