1. table below lists the dividends per share Telco Cellular paid the last six years:

Year - Dividends

2018 - 2.87

2017 - 2.76

2016 - 2.60

2015 - 2.46

2014 - 2.37

2013 - 2.25

2 - Required

2.1 - Use the dividends listed in the table above together with the Future Value Interest Factor tablesto calculate the average dividend growth rate for the period 2013-2018

2.2 - If an Investor sets 13% as the required rate of return for an investment in shares, how much would the investor be prepared to pay for a Telco share?

2.3 - If an investor sets 10% as the required rate of return for an investment in shares, how much would the investor pay for a Telco share?

2.4 - A required rate of return on investment includes both a risk free rate and a risk premium . Assuming that the risk free rate for the above required rates of return is 8%, compare your answers for 2.2 & 2.3 and explain the effect of the changes in the risk premium on the share prices