Briefly discuss the relationship between the following: (Word limit 50-70 words) i. Share price and investors required rate of return ii. Share price and divided growth rate (3 Marks)

b. Otama LTD has an issue of preference shares outstanding that pays a $2.85 divided every year. If this issue currently sells for $77.32 per share, what is the required return? (3 Marks)

c. Price Tigers LTD expects to pay a $3.25 per share dividend next year. The company pledges to increase its dividend by 5.1% per year, indefinitely. If you require a return of 11% on your investment, how much will you pay for the companys share?