a) A share has a market value of $18.50 today. The share is expected to pay annual dividends growing at 2% p.a. constantly. If the required rate of return is 15%, what should be the dividend next year? Round your answer to the nearest cent (3 marks)

b) Xtel Pty Ltd is expected to pay its first dividend of $3.00 per share in 3 years with a constant annual growth rate of g thereafter. If the share price today is $28.30 and the required rate of return is 12% p.a. Calculate the constant annual growth rate g. Round your answer to the nearest 0.01% (3 marks)

c) Calculate the current share price if there is no dividend payment for the first 2 years, and $0.50 in year 3, $0.80 in year 4 and then expects the dividend to grow at 4% p.a. indefinitely. The required rate of return is 14%. Round your answer to the nearest cent. (4 marks)

d) A preference share just paid a dividend of $5 today. Calculate the share price in 2 years if the rate of return is 13% p.a. Round your answer to the nearest cent. (2 marks)