Beeker Software Solutions recently paid its shareholders a $0.58 annual dividend. The company recently launched a new smartphone application, doubling battery life for users. The companys management expects dividends to grow at an accelerated rate of 8% p.a. for the next three years, then slow to a rate of 4% p.a. thereafter. The current market price for the companys shares is $7.20.

Determine the fair value of these shares to you, given your required rate of return is 13% p.a. Then discuss if you would invest in the ordinary shares of Beeker Software Solutions. (Ordinary share (hint: Gordons Non-Constant Growth Model))