Consider a company that has a current dividend of $1.65, a required return on equity of 13% and an expected growth rate in dividends of 2%.

(a) Calculate the valuation of these shares today. (2 marks)

(b) If the current market price of these shares is $18.39, what should you do? Why? (2 marks)

(c) If markets are strong form efficient, is there any point in doing the valuation in Part (a)? Why? (2 marks)

(Include enough working to show you understand the calculations.)