a) Mikalanga Ltd is experiencing a period of rapid growth. earnings and dividens per share are expected to grow at a rate of 18% during the the next two years, 15% in the third year and a constant rate of 65 thereafter. mikalanga\s last dividend, which jas just been paid was k1.15. if the required rate of return on the stock is 12%, what is the price of a share of the stock today?

b) A stock has a beta of 1.8. a security analyst who specialises in studying this stock expects its return to be 18%. suppose the risk free rate is 5% and the market risk premium is 8%. is the analyst pessimistic or optimistic abot this stock elative to the markets expectations?