Koyala India, Ltd$.,$ India's largest producer of coal, just announced its earnings per share

of INR $20$ in $2024,$ along with a cash dividend of INR $15$ per share, which is in line with its

policy of $25\%$ earnings retention. Due to the expected growth in the Indian economy, the

company is expected to have good investment prospects in the coming future and is likely

to have a Return on retained earnings $($RoRE$)$ of $10\%$ for the next $6$ years, after which the

growth rate is expected to decline linearly over the following $4$ years to $5\%$ at the end of

the $10$th year from now after which it is expected to maintain that level of growth. The

company is financed only using equity. The stock is expected to have an asset beta of

$0\mathrm{.}9.($The treasury bond rate is $6\mathrm{.}00\%,$ and the market risk premium is expected to be

$10\mathrm{.}00\%.$ What would be the growth rate for the two phases? Show the annual EPS and

the annual Dividends over a timeline for the entire period until the beginning of the terminal

period $($year $0$ to year $11).$ Calculate the discounting rate from the shareholder's

perspective. Estimate the value of equity using the Dividend Discounting Model, assuming.

that the firm's dividend policy will remain the same.

$(10$ Marks$)$