1) a) A share has the following expected cashflow. It has zero dividends for 10 years, then a

$5 dividend that remains constant for the rest of its life. Show that the share's market

price today should be P 0 = 124.02.

b)A share has the following expected cashflow. It has zero dividends for 2 years, then a $5

dividend that is constant for 2 years, and then it grows at 1% per year. Show that the

share's market price today should be P 0 = 233.36