nestion 6 a) Priscilla Mathhews is considering purchasing the common stock of Viper Boats Industries, a rapidly growing boat manufacturer. She finds that the firm's most recent (2012) annual dividend payment was $1.50 per share. Priscilla estimates that these dividends will increase at a 10% annual rate, g, over the next 3 years (2013, 2014, and 2015) because of the introduction of a hot new boat. At the end of the 3 years (the end of 2015), she expects the firm's mature product line to result in a slowing of the dividend growth rate to 5% per year, g2, for the foreseeable future. Victoria's required return, is 15%. What is the current value of Viper Boats's stock? (7 marks) page 4 b) The following hypothetical exchange rates arq available: $1.6/ 100/$ 160 / The hypothetical inflation rates in these countries are 20%, 15% and 10% per year for the U.S, Britain and Japan respectively. You are required to: i) ii) State the current exchange rates in terms of /S, $ / and / Compute the likely exchange rates for the three currency pairs for the next year