Anny Co is a young company in the fast-growing Artificial Intelligence industry. It intends to not pay any dividends for the next 5 years. However, it plans to pay a dividend of $1 on the 6th year and will increase the dividend by 4% per year thereafter.

a) What would be the current share value if investors required return is 12% per year?

b) Discuss two reasons for Annys decision not to pay dividends for the first 5 years. Anny also is considering another plan to pay the following dividends over the next 3 years, of $0.25, $0.60, and $0.70 respectively. Thereafter, it intends to grow the dividends at 3% per year thereafter.

c) What would be the current share value under this plan if investors required return remains at 12% per year?

d) Discuss whether it is possible for Snowflake to have a high share price if it decides that it will not pay dividends at all for the years ahead.