Question: Good day. Could you kindly complete this with working please? I'd really appreciate it, thanks in advance and have a great day. a) Aitkens Technologies

Good day. Could you kindly complete this with working please? I'd really appreciate it, thanks in advance and have a great day.

Good day. Could you kindly complete this with
a) Aitkens Technologies Ltd (ATL), based in St. Catherine, has just patented a new technology which will give them a competitive advantage over their competitors. It is expected that their profitability will increase until their rivals respond with technological innovations of their own. The advantage is expected to last for three years resulting in the following growth estimates for profits and dividends: 30% in year 1, 25% in year 2 and 20% in year 3. Profits and dividends are expected to grow at a long-term rate of 6% after year 3. ATL's cost of capital is 17.5% and their most recent dividend was $2.55. i.) Calculate ATL's share price today (Po). (9 Marks) ii.) Calculate the expected share price one year from today (P,). (6 Marks) b) Explain the principle of market equilibrium as it relates to Caribbean Cement Company Limited (CCC) shares, which are currently trading at $95.00. (4 Marks) c) Sandrene Investments Limited (SIL) has three preferred stocks on the market. The dividend rate, Required Return and Par Value of each preferred stock is presented in the table below. Name Dividend Rate Required Return Par Value Series A 5.6% 9.85% $80 Series B 8.7% 10.15% $90 Series C 7.4% 8.68% $100 Calculate the price for each of these preferred stocks? (6 Marks)

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