Company BM pays quarterly dividends. As of the 20th of Feb 2019, the dividend of 20 cents was just paid today and the next will be paid 1 quarter later. Suppose future dividends will be growing at 2% per quarter forever. We require 15% return per year (EAR).

a) What is the intrinsic value of BM today?

b) One quarter later, you sell the BM stock at P/E ratio of 7. If BMs earning per share is $2, what is the selling price

c) Suppose the value you get in part (a) is also the market price of BM by then, you sell it one quarter later at the price in part (b) before it pays dividend. What is

the holding period return from the 20th of Jan 2019 to 20th of Apr 2019?

d) You just inherited a trust that will pay you 126000 per year in perpetuity. The first payment occur in 5 years larer with a 9.32% annual interest rate, what is the value of the trust?