C2(a) New Universe Limited has just paid a dividend of $1.50 per share. The company is expected to have a strong growth of 12% per annum for the next two years. However, after this two-year period, the company is expected to grow in line with the overall economy's growth of 4% per annum. If the required rate of return is 15%, what is the expected fair value of New Universe's shares based upon a dividend-based model? (12 marks) C2(b) Advanced Technology Ltd. will pay a $3.80 per share dividend next year. The company pledges to increase its dividend by 2.4% indefinitely. How much are you willing to pay to purchase this company's stock today if you require a 6.9% return on your investment? (4 marks) Page 5 of 6 C2(c) Longway Utility Equipment Ltd.'s stock currently sells for $50 per share. The market requires a 15% return on the firm's stock. The company maintains a constant 8% growth rate in dividends. What was the most recent annual dividend per share paid on this stock? (4 marks)