a) GHI td just paid a dividend of $0.60 per share on its ordinary shares. The dividend is expected to grow at 12% for the next year, after which it is expected to grow at 5% indefinitely. If the required rate of return for the share is 9% per annum, calculate the current value of an ordinary share in GHI Ltd.

b) Calculate the current value of a preference share in JKL Ltd, where its face value is $20 per share, the preferred dividend rate is 6% and the required return is 8% per annum.

c) An investor buys 1 share of MNO Ltd at a current price of $40. The firm does not pay any dividends. The forecasted possible stock prices one year from now are as follow:

$37 with probability of 20%

$42 with a probability of 70%

$48 with a probability of 10%

calculate the investors expected return for holding the stock for a year.