$($A$)$ Magadh Publishing Co$.$ has expected earnings per share of $32$ which is $20\%$ of their Capital

Employed. The cost of equity is $15\%.$

i$)$ According to Gordon's model, why should the price of a growth firm be higher when the

dividend payout is low?

ii$)$ According to Gordon's model, what is the price of a share of this company if the firm is

contemplating the payment of $8$ per share in cash dividend?