Poh Corporation is in a stage of supernormal growth due to the creation of a new product. However, CFO Poh Johnson does not believe that the current share price in the market reflects this growth. Currently one share is being traded for $26.60, with 50 Million Shares outstanding. Investors currently expect a return of 3%. Additionally, the corporation recently paid a dividend of $3.50, and growth is expected to be 1% for the next three years, eventually slowing down to 0.5% from year 4.

A) Calculate the value the present value of the company using DDM. 12 Marks

B) How does the present value of one share compare to current market value? 3 Marks