It is now January $1,2018.$ Last year Kenworth Enterprises experienced major operational

problems which affected the company$$s financial condition, forcing management to

temporarily suspend dividend payments. It is expected that the company will not pay a

dividend in $2018$ and $2019$ but will declare a dividend of K$50$ per share in $2020.$ Dividend

growth is expected to be $3$ percent in $2021$ and $2022$ and thereafter growth is expected to

indefinitely be the same as for the economy, $6$ percent. The required rate of return is $10$

percent.

Required

A$.$ Calculate the expected dividends for $2018$ through to $2022(10$ Marks$)$

B$.$ What is the value of the stock today? $(15$ Marks$)$