Question 5: Fuller and Hsia's (1984) H model.

a) Define and explain this model and its use

b) Consider the following data:

- Dividend payment of $1.03;

- Growth of 21% for the next 2 years (gs);

- The growth then decreases for the next 6 years until it reaches a stable level of 5.0%;

- The required rate of return is 9.0%;

- The share price is $52 Assuming 3 levels of growth,

use the H model to value this stock.