company has just paid a 10 cent dividend per share. This dividend is expected to grow at 8% per year until year 3. After that it will grow at 7% per year (growth assumed indefinitely). Let's assume a discount rate of 12% to reflect the systematic risk involved.

The dividend in year 3 would be Blank 1 Question 5 12.5911.66200.85269.58 and the value (price) of the share in year 3 using the adapted model is Blank 2 Question 5 12.5911.66200.85269.58 .

The current ex div value of the company's shares is approximately Blank 3 Question 5 219.79223.50327.55426.89 .