Company Paris will be shortly listed on the stock market. This company is expected to pay a

dividend of $10$ in the next year. This dividend presents $60\%$ of EPS and is expected to grow perpetually

at $8\%$ per year.

$-$ What will be the price of Paris stock if the discount rate is $12\%?$

$-$Calculate the expected return of this stock in the next two years and decompose it into added

value and yield rate.

$-$ What will be the new investment return to obtain a dividend growth rate of $8\%?$ This

hypothesis is$-$it realistic?