$($b$)$ S Ltd$.$ is interested in expanding its operation and planning to install manufacturing plant at Japan. For the proposed project it requires a fund of $10$ million $($net of issue expenses$/$ floatation cost$).$ The estimated floatation cost is $2\%.$ To finance this project it proposes to issue GDR$.$

You as financial consultant are required to compute the number of GDRs to be issued and cost of the GDR with the help of following additional information.

$($i$)$ Expected market price of share at the time of issue of GDR is $250($Face Value $100)$

$($ii$)2$ shares shall underly each GDR and shall be priced at $10\%$ discount to market price.

$($iii$)$ Expected exchange rate $2/.$

$($iv$)$ Dividend expected to be paid is $20\%$ with growth rate of $12\%.$