7. (10 marks) Starrup Limited is a start-up company. As it will need all its earnings to fuel its growth, no dividend is expected from the company for the next five years. Starting from Year Six, it is expected to pay constant annual dividend $5 per share for five years. Beyond that, it is predicted that the dividend will grow by 2 percent each year in the foreseeable future. (Hint: it may be helpful if you draw the time-line) a) Calculate the share price of the Starrup Co. stock, assuming that the required return on this stock is 13%. (6 marks) b) Explain how your valuation of the company's stock would be affected if instead the company had decided to pay dividend in the first five years, even though the money is needed to finance growth. (4 marks)