Bronze Company Ltd last paid a dividend of $0.20 per share. This dividend is expected to grow at 15% per annum for three years, then at 10% per annum for the next three years, after which it is expected to grow at a 5% rate forever.

REQUIRED:

(i) Calculate the price you would pay for the share if your required rate of return is 10%?

(ii) Calculate the price you would pay for the share if you expected to hold the share for only three years