I urgently need help with this question. Thank you.

Name: NTU ID: Nanyang Business School BF3203 and BF3217 EQUITY SECURITIES Quiz 2 Instructions: . Please write your name and NTU ID number on the top of this page. . The quiz consists of one question and lasts one hour. Answer the question without consulting anyone. . Use the space provided, including the back of a page. Show your work. Answers without work receive no credit. . Wrong answers with partially correct work may receive partial credit. You are allowed to use a calculator and one A4-size two-page paper for formulas and notes. Do not talk about this quiz with any other students in the other session. Question 1: World Telecom, a telecommunication firm based in Singapore, is expected to pay S$3.5 of dividend per share next year. World Telecom's expected earnings per share for the next year is S$10.5. It is expected to grow forever at a rate of 4%. Its cost of equity is 6%. Its return on equity is 6%. a) What is its share price? (2 marks) b) What will be the share price if the firm increases the payout ratio to 100%? (2 marks) c) What will be the share price if the firm decreases the payout ratio to 10%? (2 marks) d) What will be the share price if the firm increases the plowback ratio to 100%? (2 marks) e) What will be the effect on share price if the firm increases the payout ratio when the firm's return on equity is above 6%? (2 marks)