It is early January 2020, and Northern Electric Companys most recent dividends are shown in the following table. While growth has not been constant, the implied growth rate is expected to continue well into the future.

Year: Dividend:

2019 2.47

2018 2.30

2017 2.19

Required (Show all of your calculations):

a) What approximate rate are dividends expected to grow at per year in the future? Use your knowledge of time value of money calculations to estimate the growth rate. (Please answer as a percentage.)

b) If the required rate of return on similar-risk investments is 9%, estimate the current value of a common share of Northern Electric Company. (Round your answer to two decimal places if applicable.)