OOO has no debt, and an equity cost of capital of 8%. The company is currently valued at $1,000.00 Million. The company has 30 Million shares.

OOO new product XX generated earning of $2 per share this past year and are expected to grow at a rate of 10% per year until the end of year 5. After that the growth rate will be 4% due to completion in the markets. The dividends are expected from the 6 the year at 60% of the earnings.

Required

1. Show the expected earnings from all years from 1 to 5
2. Calculate the expected dividend
3. Estimate the value of OOO with the new product
4. Estimate the total value of OOO