(a) Chelseao plc. pays dividends that are expected to grow at 5% each year. Dividends will stop growing at the end of year 5, at which point the firm will pay out all its earnings as dividends. The next dividend will be paid one year from now at 10 and its earning per share (EPS) at the time will be 15. If the appropriate discount rate on Chelseao plc. is 8%, what is its fair market price of the share today? [15 marks] (b) Arsenalo plc. has just issued level coupon bonds on the market with 7.5 years to maturity and a yield to maturity (YTM) of 12%, and at a current fair market price of 950. The bonds make quarterly payments. What must be the coupon rate on these bonds? Face value of these bonds is 1,000