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Kalvin SA pays dividends that are expected to grow at 7 percent each year. These will stop in year t+5, at which point the company

Kalvin SA pays dividends that are expected to grow at 7 percent each year. These will stop in year t+5, at which point the company will pay out all its earnings as dividends. Next year's dividend is 10 euro. 1) If the appropriate discount rate on Kalvin shares is 9 percent, what is its share price today? 2) What happens to the share price if an earthquake destroys one of the company's production plans and dividends are now expected to grow at 3.5 percent

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