Mr. A is thinking of buying shares at ? 500 each having fate ouiut U bonus at the ratio of 1:5 during the fourth year. Annual expected dividend is 20% rate is expected to be maintained on the expanded capital base. He intends to sell the end of seventh year at an expected price of 900 each. Incidental expenses for and the same ncidental expenses for purch and sle eturn of 12%pe of shares are estimated to be 5% of the market price. He expects a minimum r annum a) Should Mr. A buy the share? b) If so, what maximum price should he pay for each share? Assume no tax on dividend income and capital gain