Dundee plc is expected to pay a dividend of 50p next year, 60p in year two and 70p in year three. The dividend in year four is expected to increase significantly as the company's investment opportunities are expected to be lower by then and the company will not need to retain so much of its earnings. The expected dividend for year four is 120p and this is expected to grow subsequently at 4 per cent per annum. If the required rate of return on the shares is 14 per cent, determine a value for the company's shares. a) Dundee plc is expected to pay a dividend of 50p next year, 60p in year two and 70p in year three. The dividend in year four is expected to increase significantly as the company's investment opportunities are expected to be lower by then and the company will not need to retain so much of its earnings. The expected dividend for year four is 120p and this is expected to grow subsequently at 4 per cent per annum. If the required rate of return on the shares is 14 per cent, determine a value for the company's shares. What proportion of the value is due to the terminal value?