(a) JB PLC has just paid a dividend of 2 per share. Dividends are expected to grow at a rate of 15% for the next three years. From then on dividends are expected to grow at a rate of 4% indefinitely. The required rate of return is 10%. Calculate the current share price of JB PLC. [12 marks] (b) We are still considering JB PLC. Assume that in year 4 the projected P/E ratio is 13, and that JB PLC will pay out 60% of earnings as dividends. i. What is JB PLC's stock price in year four? [3 marks) ii. Based on the information you have now calculate the current share price of JB PLC [3 marks) (c) UnReal PLC has just paid a dividend of 1.5. Dividends grow annually at a rate of 8%, and the required rate of return is 12%. Answer the following: i. What are the assumptions of the Gordon growth model? [2 marks] ii. What is the current share price of UnReal PLC? [2 marks] iii. What is the return on UnReal's stock if it is purchased for 38 ? [3 marks] [Total: 25 marks)