(b) An investment actuary is valuing the shares of two companies, Borg P/c and Klingon PIc, using the discounted dividend model at an interest rate of 8% p.a. effective. Borg PIc will not pay a dividend for another 5 years. Thereafter dividends are expected to be paid every 6 months. The first three dividends received are expected to each be 5 cents per share with all further dividends received expected to be 7 cents per share. Klingon PlC pays dividends every 12 months with the next dividend due in 4 months' time and expected to be of amount 8 cents per share. Dividends will remain at 8 cents per share for a further 6 years and thereafter are expected to increase at a compound rate of 4% p.a. i) Calculate the value of a Borg PIC share. [4] ii) Calculate the value of a Klingon Plc share. [6] The investment actuary considers how the value of both shares will change if the effective rate of interest increases to 10% p.a. iii) Show, by calculation, that the percentage fall in the value of Borg Plc's shares is greater than the percentage fall in Klingon P/C s shares in this case. [8]