i. The ordinary share of Solar power Systems Limited paid dollar 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years if you are. If your required rate of return is 10.5%, what is the value of the shares for you? ii. Should you make the investment? Why or why not? iii. Given that Solar power Systems Limited's return on equity is 18% and management plans to retain 40% of earnings for investment purposes, what will the firm's growth rate be? Iv. If the firm decides to increase its retention rate, what will happen to the value of its ordinary shares? 6 Marks Formula: VE=rEgD1=rEgD0(1+g) Divisend growth rate (g)= Retention ratio Return on equity (ROE)