Over the next three years, the company Paris is expected to pay dividends as follows:

Time $123$

Dividend $152024$

Thereafter, Paris dividends are expected to grow at a constant rate of $5\%$ per year. Paris should reinvest

$40\%$ of its benefits from T $=2.$ The expected return regarding Paris stocks is $15\%.$

$-$ Calculate the stock price at the end T $=2.$

$-$ If Paris keeps $40\%$ of its EPS to reinvest in new projects, what must be the return rate of new

investments in order to achieve the dividend growth of $5\%?$

$-$ What is the stock price today?

$-$ If Paris changes its dividend distribution policy and decides to distribute all its benefits to its

shareholders from T $=3,$ what would be the impact of this policy on the stock price? Comment

on the result.