1a) A share has the following expected cashflow. A $5 dividend at the end of 1 year that

remains constant for the next 15 years, and then grows at 1.5% per year. Show that the

share's market price today should be P 0 = $276.85

1b) A share has the following expected cashflow. First a $3 dividend at end of 1 year, that

grows constantly at 2% for the next 10 years, and then grows at 1% per year for the

remaining life of the company (in perpetuity). Show that the share's market price today

should be P 0 = $162.61