GGC Ltd paid an annual dividend of $1.25 yesterday and maintained its historic 7 per cent annual rate of growth. You plan to purchase the shares today because you believe that the dividend growth rate will increase to 8 per cent for the next three years and the share price will be $40 per share at that point in time: a) How much should you be willing to pay for GCC's shares if you require a 12 per cent return? b) What is the maximum price you should be willing to pay for GCC's shares if you believe that the 8 per cent growth rate can be maintained indefinitely and you require a 12 per cent return? If the 8 per cent rate of growth is achieved, what will the price be at the end of Year 3, assuming the conditions in Q13b)? c) 21