Question: I need the right Answer for both please use this formula -----> price = div/r-g Question 4 You are interested in buying shares in ABC

I need the right Answer for both

please use this formula -----> price = div/r-g

Question 4 You are interested in buying shares in ABC Plc. and obtain the following data: Dividend today: 1 Cost of capital: 12% Growth: 5% a) What is the value of the stock today if you assume that it will continue like this into the future b) What is the value of the stock today if it has an offer to be bought for 10 per share in three years' time (note this implies you will also receive 3 dividends)

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