ABC plc has paid the following dividends over the past seven years:

 

i) Based on the information provided apply Gordon's growth model to compute the dividend growth rate?

 

ii) If you can earn 13% percent on similar-risk investments, what is the most you would be willing to pay per share?

Year 2014 2013 2012 2011 2010 2009 2008 2007 Dividend per share 2.35 2.28 2.10 1.95 1.82 1.80 1.73 1.61