JB plc is expected to earn $5\mathrm{.}14$ a share in the next year and projected to pay $36\%$ of

earnings as dividend. The CFO of JB plc has forecasted that the earnings would grow

at $8\mathrm{.}5\%$ per year over the next $5$ years. Investors required rate of return from JB plc is

$7\mathrm{.}4\%$

Required:

a$)$ Calculate the earnings and dividends of the next five years.

b$)$ If the earnings growth rate falls to $4\%$ in year $6$ calculate the expected share

price at the end of the year $5.$

c$)$ Calculate the value of the share of JB plc today.