=258.3333(1.006)4 =$252.2252 < Question 12 (20 points) a. Sunrise Ltd. just paid $4 dividend per share. The dividends are expected to grow at a high growth rate of 8% per year for the coming 6 years. After that, the growth rate will slow down and return to a normal growth rate of 4% per year. The required return for the stock is 10%. What is the value of Sunrise common share today? (10 points) < The value of Sunrise common share today < 4(1.08) 1.08. 4(1.04) 0.1-0.08 [1-(1986]+ (1.08) 6 =$84.6235 b. Now 0.1-0.04 dhe suppose, to the economic uncertainty in the wake of the pandemic, Sunrise Ltd. would like to adopt a conservative payout policy and reduce the dividend payout gradually. The company just paid a dividend of $4 per share. The dividends are expected to increase 8% next year and then the dividend growth rate will reduce by 0.8 percentage points per year until it reaches the industry average of 5.6% dividend growth per year, after which the company will keep this 5.6% constant growth rate per year indefinitely. If the required return for the stock is 10%, what is the company's stock price today? (10 points) < 11,12 2134 Qx 131% Book Air F7 U DII F8 DD F9 * 8 ( 9 ) 0 J K A F10 I 24 F11 F12 + || } [ ] 0 P { delete