Company Z's earnings and dividends per share are expected to grow indefinitely by 5% a year. If next year's dividend is rupee 10 and the market capitalization rate is 8% what is the current stock price?

Company Z-prime is like Z (Q7) in all respects save one. Its growth will stop after year 4. In the year 5 and afterward it will pay out all earnings as dividends. What is Z-Prime's stock price, assume next year's EPS is Rs. 15.

If company Z (Q7) were to distribute all its earnings, it could maintain a level dividend stream of Rs. 15 a share. How much is the market actually paying per share for growth opportunities?