lius QUESTION FOUR A. Jumbo Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 13 percent, and the stock currently sells for K65 per share. What is the projected dividend for the coming year? (15 Marks) B. Prudential Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs K200, 000 per year forever. If the required return on this investment is 6.5 percent, how much will you pay for the policy? Suppose the Prudential Life Insurance Co. counter offers and told you that the policy costs K340, 000. At what interest rate would this be a fair deal? 12050 (10 Marks) Pyys 31 [TOTAL: 25 Marks] Lo Hoi GC Hos! 2.12