D$-$Tech UK Ltd is planning to invest in Jumbo PLC$.$ The assistant accountant provides the following information regarding Jumbo PLC$\text{'}$s investment.The current net income of Jumbo PLC is $23$ million. The company has issued both preferred and common shares. No dividends will be paid on any of the shares over the next three years. Please explain the followings to the D$-$Tech UK Ltd board of directors.

$$ State one possible reason to explain why the company chooses not to declare dividends for the next three years.

$$ Suppose the company will pay a dividend of $$2\mathrm{.}5$ per common share four years from today and indefinitely increase the dividend by $3$ percent per year. If the required return on this stock is $12$ percent, what is the price per common share in three years? What is the current share price?

$$ Suppose the company decides to pay a dividend of $$2$ per preferred share four years from now and maintains the practice forever. If the required rate of return is $10$ percent, what is the price per preferred share three years from now? What is the current share price for the preferred stock?