4. Norah SA has just paid an annual dividend of 1.99. Analysts expect the company's profits to increase by 6% per year for the next four years. Beyond that, Norah SA's profits are expected to grow at the industry average rate of 4.6% per year.

a. If Norah AG's cost of equity is 8.2% per year and its dividend payout ratio remains constant, what price should Norah AG's shares sell for using the dividend discount model? 1 point.

b. If, while maintaining a constant total payout ratio, the CFO finally decided to pay out 50% of the profits in dividends and use the remaining 50% to buy back shares, what would be the price of Norah SA stock? 1 point.

c. What is the most appropriate/direct discount rate to use to determine the price of this company's stock? 1 point.