otama ltd has an issue of preference shres outstanding that pays a 2.85

Week 8 Question (10 marks) a. Briefly discuss the relationship between followings (Word limit 50-70) i. Share price and investors required rate of return Share price and dividend growth rate (3 Marks) b. Otama LTD has an issue of preference shares outstanding that pays a $2.85 dividend every year. If this issue currently sells for $77.32 per share, what is the required return? (3 Marks) C. Price Tigers LTD expects to pay a $3.25 per share dividend next year. The company pledges to increase its dividend by 5.1% per year, indefinitely. If you require a return of 11% on your investment, how much will you pay for the company's share? (4 Marks) 2