A company currently pays last year dividend of Rs.5 per share. It is estimated that the companys dividend will grow at a rate of 30 percent per year for the next 3 years, and then the dividend will grow at a constant rate of 10 percent thereafter. The companys stock has a beta equal to 1.7, the risk-free rate is 7 percent, and the market return is 14 percent.

Required:

1. What would you estimate is the stocks current price?

2. What is companys stock price after 1^st year and 2^nd year?

3. Calculate Capital Gain Yield for 3 Years.

4. Calculate Dividend Yield for 3 Years.