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Assume you have generated the following information and forecast about the share of Company A: Year Dividend per share Share market price 2016 $2.21 $41

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Assume you have generated the following information and forecast about the share of Company A: Year Dividend per share Share market price 2016 $2.21 $41 2017 $2.65 $42 2018 $3.08 $43 2019 $3.48 $45 a. In addition, the dividend per share will grow at 3% after 2019, and the required rate of return is 11%. Required: Use the dividend valuation model to find the share prices in 2016 and 2018. (6 marks) . b. Given the market prices of shares in the table, please discuss whether this share is a good investment? What additional information is required for your further analysis? (9 marks)

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