SECTION A Question 2: a) A company will pay a per share dividend in 1 year The dividend in 2 years will be 2 per share, and it thereafter expected that dividends will grow at 5% per year the expected rate of return on the stock is 12%. What is te current price of the stock? Po Div (4 marks) 2. What is the expected price of the stock in a year's time? 4 marks) b) How much would you need to set aside to provide each of the following? Interest rate = 8%) 1. l million at the end of each year in perpetuity. 4 marks) 2 A perpetuity that pays1millionattheendofthe firstyearand that grows at 3% 4 marks) a year. 4, fl million at th end of cach year for o ye (4 marks) Total 20 marks) 4