ABC Ltd is a public limited company listed at Stock Exchange. Its stock has a face value of Rs. 10. Currently, the company has paid a dividend of Rs. 10 per share and intends to pay the same dividend with a constant growth rate of 5% per annum up to 3 years. Afterwards, the growth rate may drop to 4% for next 2 years and thereafter the growth rate may be 2% per annum forever. At present, the market price of this stock is Rs. 120.

What is the amount of dividend to be received at the end of Year 3?

What is the amount of dividend to be received at the end of Year 5?

If you want to make investment in this stock for 10 years and your required rate of return is 10% per annum, at what price would you be willing to purchase this stock if this share will be sold for Rs. 100 each at the end 10th from now?