B$.$ A company announces a new preference share with price $$30$ per share. The company will

not pay any dividend in year $1$ but will pay $$1\mathrm{.}00$ at the end of second year, and $$2$ at the end of $3$ rd year. From the end of the $4$ th year, it will pay $$4\mathrm{.}00$ dividend forever. Is it worth

to buy this share? Show proper calculations in support of your decision. Assume the

discount rate as $10\%.$

$($Marks$3\mathrm{.}5)$