b) The Libam Insurance company has a dividend policy of increasing its dividend by 10% per year. It has been successful in implementing this policy over the past five years and, in its latest Directors' report, it was stated that it foresees the policy continuing into the future. The dividend paid in 2014 was 590 c per share. The market price of Libam shares on 2 January 2015 was 21 400c. (i) Using Gordon's growth model, determine the shareholder's expected return on Libam shares at the 2 January 2015. [10] b) The Libam Insurance company has a dividend policy of increasing its dividend by 10% per year. It has been successful in implementing this policy over the past five years and, in its latest Directors' report, it was stated that it foresees the policy continuing into the future. The dividend paid in 2014 was 590 c per share. The market price of Libam shares on 2 January 2015 was 21 400c. (i) Using Gordon's growth model, determine the shareholder's expected return on Libam shares at the 2 January 2015. [10]