a) Blackbird Ltd is not expected to pay any dividends for the next 2 years. The expected dividend for the third year is $0.75 per share, which will continue to grow at a constant rate of 25% per annum for another 2 years. After that, the dividend will grow indefinitely at 3% per annum. If the rate of return is 12% per annum, what is the current value of a share in Blackbird Ltd? (3 marks)

b) If the discount rate is 6.5%, what is the current value of a preference share with $4 dividends perpetually? (1 mark)

c) Describe three differences between ordinary shares and preference shares. (3 marks)

d) Describe the three different forms of efficient market hypothesis. (3 marks)