2.a) what would and investor pay for a share if she just received a dividend of $2.50, her required return is 15% and she expects dividend to grow at a rate of 10% per year for the next two years and then a rate of 5% thereafter?

b) Estimate the value of JB HI -FI shares as at 30 June 2012, based on the following data and assumptions: sales as at 30 June 2012 3,128 million sales to grow at the rate of 15per cent to June 2013 to then grow at a rate declining by 2.2% percentage points per year unit they are 4%in the year to June 2018 and onwards. EBIT:6% of sales tax rate:30% Depreciation, capital expenditure:0 Increase in NWC:20% of changes in sales WACC(Discount rate):11% Perpetuity growth rate:4% debt as at 30 June 2012:150million cash as at 30 June 201w:40million number of shares of outstanding as at 30June 2012: 99million