Blue World Corporation is one of the biggest manufacturers of cable wires in South East Asian for the last 20 years. It has its branch all over the world which makes him one of the highly esteemed players in wire making industry around the globe. Last year, it decided and paid a dividend of Rs.3.50. The dividend is growing at a constant 9% rate over time. Based on the stock's risk, investors require a 17% rate of return. 1) Using the constant dividend growth model, what should the Blue World Corporation's stock price be (Po)? 2) Estimate dividend yield (DY) and capital gain yield (CGY) based on the annual dividend received from Blue World Corporation. 3) Now assume that the above growth rate of 9% is constant for the first two years and then it will rise to 11% for the next three years and after that, it will again come down to 10%. Calculate Ps and P11. 4) Explain briefly how the following situations will affect the current value of a stock according to the Gordon Growth Model? a. Increase in dividend amount (D) b. Increase in the discount rate (Ks) c. Decrease in the discount rate (Ks) d. Increase in growth rate (g)